South Africa's PIC to back Absa-Barclays deal - report

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February 25, 2013 5:21 PM EST

South Africa's government pension fund will vote in favour of Absa Group's plan to buy the African operations of its British parent Barclays , Business Day newspaper reported on Monday.

Absa's minority shareholders, including the Public Investment Corporation (PIC) pension fund, are due to vote Monday on the bank's plan to issue $2 billion in stock to Barclays, in exchange for the British lender's African businesses.

While the deal is dilutive, it also offers Absa exposure, the PIC told Business Day.

"We will support the deal primarily because this provides Absa with an immediate exposure to a higher growth trajectory market," the paper quoted an official for the pension fund as saying.

It did not give the name or title of the official.

The PIC is Absa's largest shareholder after Barclays, holding a little over 9 percent of the South African bank, according to Thomson Reuters data.

(Reporting by David Dolan; Editing by Vicki Allen)

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Copyright 2012 Thomson Reuters UK. All rights reserved.

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