African Bank to buy Grindrod for R1.5 billion as it plans move into business banking

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African Bank has announced a deal to purchase Grindrod Bank and its holding company Grindrod Financial Holdings.

Grindrod Bank is an investment bank established 26 years ago, which specialises in managing cash deposits, corporate and investment banking.

It has typically been a niche financier in the South African property market known for its specialised expertise in commercial and industrial property finance. It also provides bespoke financial services to private, corporate and institutional clients. “A key part of African Bank’s ‘Excelerate25’ strategy is to expand its core. This acquisition will go a long way in delivering on this theme, and meeting its mission objectives of becoming scalable, diversified and sustainable, with a compelling listable proposition,” African Bank said in a shareholder statement on Thursday .

“Grindrod Bank will provide an entry into the business banking market which will be grown off African Bank’s larger balance sheet and strong capital levels.” The total cash consideration payable to Grindrod in terms of the proposed transaction is R1.5 billion, with the deal still subject to regulatory approval.

 

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This has certainly been a momentous week for us. The release of our Interim Financial Results, which saw a 145% increase in profits, has generated a lot of favourable media coverage — not only in terms of our numbers, but for the strategic aims of Excelerate25. AudaciousGrowth

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African Bank eyes growth in business banking with R15bn deal to buy Grindrod Bank | Fin24African Bank has acquired 100% of Grindrod Bank. The deal, worth R1.5 billion, will give African Bank an existing corporate and SME client base. | Fin24 Fin24 Is it R15bn or R1.5bn? 🙄 Fin24 AdriaanBasson What's going on here? Fin24 Our acquisition of Grindrod means that we will be even better placed to service the needs of entrepreneurs and SMMEs, providing holistic solutions that transcend traditional business banking offerings. AudaciousGrowth
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