African Bank Limited, a top-performing retail bank run by Kennedy Bungane, has received approval from South Africa’s Competition Tribunal to finalize the acquisition of Grindrod Bank and Grindrod Financial Holdings in a deal worth R1.5 billion ($97 million).
According to the Tribunal’s certificate, the acquisition has been allowed in accordance with Section 16(2) of the Act after consideration of all pertinent data and the Competition Commission’s advice.
Grindrod Bank and Grindrod Financial Holdings serve as the banking subsidiary and financial services holdings of Grindrod Limited, a freight logistics and shipping services firm that is owned in part by Remgro Limited, the investment holding company of South African billionaire Johan Rupert.
African Bank Limited, under the leadership of Kennedy Bungane, made an offer to purchase Grindrod Bank and Grindrod Financial Holdings as part of a concerted effort to enter South Africa’s fiercely competitive business banking market nearly five months ago. The Competition Tribunal of South Africa recently approved the deal.
Following the regulatory approval, Kennedy Bungane, CEO of African Bank, stated that the acquisition of Grindrod Bank and Grindrod Financial Holdings represents a turning point in the bank’s history since it would strengthen and expand its ability to provide business banking and financial services.
“This is a critical stage in the final incorporation process, and we applaud the Commission and the Tribunal for their diligent work and prompt determinations,” Bungane continued.
As Remgro continues to sell stakes in companies in line with its investment portfolio realignment, the R1.5 billion ($97 million) acquisition, which is anticipated to be finalized soon, represents a strategic exit for the leading investment group.
Accordingly, Remgro has made known its intentions to unbundle a 25-percent ownership in Grindrod to shareholders, a move that will pivot Grindrod’s management and activities to increase value and achieve its stated goals.
