Barclays amendments to EnterCard joint venture

RNS Number : 4221R

Barclays PLC

26 June 2015

BARCLAYS PLC

Amendments to EnterCard joint venture

In 2005 Barclays and Swedbank AB (publ) entered into a Nordic credit card joint venture, EnterCard Holding AB ("EnterCard"). The parties have agreed to make certain amendments to the joint venture agreement including to the exit provisions and as a result the amendments constitute a Class 2 Transaction under Chapter 10 of the UK Listing Authority's Listing Rules. Barclays continues to own 40% of the total share capital of EnterCard but is entitled to one-half of all distributions and equal representation on the EnterCard board.

Under the revised joint venture agreement, the service of a termination notice by a party requires that party to specify a price at which it is willing to acquire the other party's shares in the joint venture, subject to a cap. The party receiving the termination notice may elect to sell its shares in the joint venture or purchase the other party's shares at the price specified in the termination notice.

EnterCard is headquartered in Stockholm and operates in Sweden, Norway and Denmark with the issuance of credit cards as its primary business focus. It distributes and markets credit cards under its own brand re:member as well as different partner brands, including Swedbank. Freddy Syversen is the EnterCard Chief Executive Officer.

The EnterCard group had gross assets of SEK18.9 billion (£1.5 billion) as at 31 December 2014 and reported a 2014 profit before tax of SEK1,404 million (£108 million). Barclays accounts for its interest in EnterCard as a joint venture.

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