Barclays PLC (BARC.LN) Friday announced that it has received a binding offer from BlackRock, Inc. for the purchase of the Barclays Global Investors business (BGI) for $13.5 billion (GBP8.2 billion).

MAIN FACTS:

-Barclays to get 37.784 million new BlackRock shares giving it an economic interest of 19.9% of the enlarged BlackRock Group which would be renamed BlackRock Global Investors.

-Remainder of the consideration of $6.6 billion (GBP4.0 billion) would be paid by BlackRock in cash.

-BlackRock offer constitutes a superior offer to the transaction agreed with Blue Sparkle, L.P., the CVC Capital Partners Group SICAV-FIS S.A. vehicle (CVC) formed in relation to its proposed purchase of the iShares business announced on April 9.

- Unless Barclays receives an offer from CVC by the end of June 18 which it considers to match the BlackRock Offer, the Barclays Board will accept the BlackRock Offer and recommend it to shareholders.

-If the proposed transaction proceeds, Barclays would expect to realise a net gain on sale of $8.8 billion (GBP5.3 billion) based on the closing price of BlackRock common stock of $182.60 on June 11, the net assets of the BGI business subject to disposal as at March 31 and transaction costs.

-Deal to gain would add an estimated 163 billionps to Equity Tier 1 and 150 billionps to Core Tier 1 capital ratios as at Dec. 31, 2008.

-Together with the conversion of the Mandatorily Convertible Notes issued in November 2008, Barclays would have reported an estimated Equity Tier 1 ratio of 8.3% and Core Tier 1 ratio of 8.0% as at 31 December 2008 on a pro-forma basis.

-Trading performance of Barclays through to the end of May has been generally consistent with the overall trends reported in its Interim Management Statement on May 7.

-In addition, Barclays has completed certain liability management actions, which, collectively, will further enhance Barclays Equity Tier 1 and Core Tier 1 ratios.

 
-By London Bureau, Dow Jones Newswires; +44 (0)20 7842 9296; ian.walker@dowjones.com