Barclays sells iShares to CVC for 4.4 billion dollars

LONDON: British bank Barclays said on Thursday it had sold its asset management business iShares to private equity group CVC Capital Partners for 4.4 billion dollars (3.3 billion euros, 3.0 billion pounds).

"Barclays today announces agreement for the sale of its iShares business to Blue Sparkle, a new limited partnership established by CVC Capital Partners Group, for a total consideration of approximately 4.4 billion dollars," the bank said in an official statement.

"The debt financing for the transaction will be provided by Barclays in the amount of approximately 3.1 billion dollars," it added.

The bank had revealed last week that CVC Capital Partners was its preferred bidder after putting iShares up for sale in March.

Barclays has fared better in the financial crisis than many of its banking rivals, turning down the option of taking government funds to get through the financial storm and preferring to raise fresh capital elsewhere.

"This transaction realises significant value for Barclays," added Barclays Chief Executive John Varley in the statement on Thursday.

"iShares has experienced rapid growth over the past several years and has reached a point where it can develop further on a standalone basis.

"Barclays shareholders will benefit from a reinforcement of our capital base and an ongoing commercial relationship with iShares."