Sanlam, the South African insurer and largest shareholder in banking group Absa, has effectively backed a proposed €4.1bn ($5.3bn) bid from Barclays.

Flip Rademeyer, finance director at Sanlam, told Reuters: "We believe the transaction needs to happen. If the Absa board makes a recommendation and say it is a fair price and we agree, we will sell 60% [of our stake]."