SMBC dumps Barclays holdings

Says divestiture will improve its "capital efficiency".

Sumitomo Mitsui Banking Corporation sold half its shareholding in Barclays plc for US$403 million after disposing of 84 million shares. Barclays shares fell almost 6% in early morning trade yesterday as the share sale was below market price.

SMBC, Japan's second largest bank, is Barclays' seventh biggest shareholder. It sold its shares in to international institutional investors primarily in Europe and the US.

SMBC said there will be no change in the current business cooperation between the two companies, and it will continue to maintain a good relationship with Barclays.

The Japanese bank said the sale would improve the group's "capital efficiency."