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Barclays has reached an agreement with Barclays Africa Group to pay £756 million ($988 million) to cancel contracts that tie the London-based banking giant to its African subsidiary, according to a statement released by Barclays Africa on Thursday.

In May last year, Barclays sold a 12.2 percent stake in Barclays Africa as part of a strategic plan to reduce its 62 percent stake in the Johannesburg-based unit. The divestment decision was aimed at allowing Barclays to free-up capital and focus on core markets in the United Kingdom and the United States.

With the separation agreement, Barclays is poised to reduce its Barclays Africa stake further below 50 percent pending approval by South African regulators. Barclays plans to retain a 10 to 20 percent stake in Barclays Africa even after the separation is completed.

According to the Financial Times, Barclays Africa depends on its UK parent for a range of services, including technology, branding, human resources, credit risk management, strategic development and operational management support. The breakup fee is expected to fund the cancellation of the master services agreement that governs the provision of these services.

“We have agreed terms of the separation payments and transitional services,” Barclays Africa said. “Contributions are expected to leave us capital and cash flow neutral.”

Barclays Africa Group has over 45,000 employees and 1,267 branches spread across 12 countries, including South Africa, Kenya, Ghana, Botswana, Zambia, Mauritius, Seychelles, Tanzania, Mozambique, and Uganda. In February 2015, the bank applied for an investment-banking licence from the Central Bank of Nigeria.

For the 2016 full year, Barclays Africa reported that total income rose 8 percent to 72.4 billion rand while after-tax profit rose 3 percent to 15.9 billion rand. The South African lender said diluted headline earnings per share – the country’s main profit measure – rose 5 percent to 17.69 cents. The profit missed analysts’ estimates, according to Reuters.