Middle East investor to sell part of Barclays holding

One of English bank Barclays’ biggest Middle Eastern investors said today that it would maintain a “close” relationship with the banking giant despite announcing plans to offload part of its stake.

International Petroleum Investment Corp (Ipic) – an investment vehicle of the Abu Dhabi royal family – said it aimed to sell the equivalent of 1.3 billion shares in the bank.

The move is set to net a large profit for Ipic, which bought shares in Barclays amid last October’s stock market crisis as part of a £7bn (€8.11bn) fundraising from Middle Eastern investors.

Barclays shares plunged 13% as investors saw the move as a sign to take profits following a recent strong run for the stock.

But Ipic stressed the decision was based on its strategy to focus on oil and gas.

Khadem al-Qubaisi, an Abu Dhabi royal and managing director of Ipic, added: “Ipic has a high regard for Barclays and great confidence in its management team and ongoing strategy.

“The Emirate of Abu Dhabi intends to maintain a close commercial and strategic relationship with Barclays in the future.”

Barclays boss John Varley also insisted the group would continue to develop its “strategic and commercial relationship” with the investor.

However, investors took news of the stake sale badly, having been assured last autumn that Ipic was a long-term investor.

Ipic is set to realise a windfall on the shares after seeing Barclays stock rally nearly five times higher in recent months as the threat of nationalisation has receded.

Barclays shares closed at more than 316p yesterday from a low point of around 66p at the start of the year.