Johann Rupert-linked Grindrod is looking for buyers for its banking subsidiary

Grindrod Limited, a holding company with more than 100 years of experience in South Africa’s logistics, transportation and freight industries, has reopened discussions with potential buyers for its South African banking business, Grindrod Bank (GRDB).

Grindrod is a freight logistics and shipping services company owned in part by South African billionaire Johan Rupert’s investment holding company, Remgro Limited. The South African firm is divided into three divisions: freight services, shipping, and financial services.

Since its inception in 1994, Grindrod Bank, a 96.83-percent subsidiary of Grindrod’s financial services operation, Grindrod Financial Holdings, has grown and matured into a highly competitive, specialized financial institution.

Despite declining to comment on the transaction, Bloomberg revealed that the sales process is generating interest from South African and international buyers, according to the people, who requested anonymity because the discussions are still private.

The latest move comes nearly three years after the holding company announced its intention to sell its South African banking operations. However, the idea was put on hold in part due to the outbreak of the coronavirus pandemic.

In recent times, South Africa’s banking industry has been experiencing a shake-up with In recent years, South Africa’s banking industry has seen a shake-up, with established players like Standard Bank having to defend their positions against online-only newcomers like South African billionaire Patrice Motsepe’s Tyme Bank and Discovery Ltd.’s branchless lender, which launched in 2018.

Due to these shifting dynamics, Discovery Limited, a South African financial services group led by leading businessman Adrian Gore, partnered with AIA Group, a Hong Kong-based international insurance and finance corporation, to establish a pan-Asian health insurance technology business.