Grindrod, the listed shipping and logistics business, on Wednesday announced the sale of 18% of its subsidiary, Grindrod Bank, to three independent black economic empowerment (BEE) entities.
This follows an announcement at the end of last year that all regulatory requirements had been met for Grindrod to acquire the bank formerly known as Marriott Corporate Property Bank — a deal that was first initiated in 2005.
Alan Olivier, Grindrod Limited CEO, said the vision of Grindrod Bank is to become a meaningfully empowered bank and that such BEE deals are the first steps in this process.
The BEE participants include Mawavune Women’s Investments, whose shareholders comprise 10 professional black women. They will be represented on the Grindrod Bank board by Thina Siwendu, an attorney with property expertise, extensive involvement in public-private partnership initiatives and corporate governance.
The second BEE entity is a partnership between Dr Sivi Gounden and Hassen Adams, current Grindrod Limited directors, with the third entity being a BEE trust. Gounden will also be appointed to the Grindrod Bank board.
The BEE shareholders are based in all major centres where the bank has offices — Durban, Johannesburg and Cape Town.
In addition to the above sale, a further 6,9% of Grindrod Bank has been sold to a management group led by Grindrod Bank chairperson Ivan Clark and MD David Polkinghorne.
Clark, also deputy chairperson of Grindrod Limited, said: “It is exciting to be involved in a business with enormous potential and, in the staff and their relationships with clients, I see the same potential for significant growth that the Grindrod Group has shown over the past eight years.”
Polkinghorne added: “This transaction brings to a conclusion a deal which has been worked on for some time, and the bank is looking forward to working with its new shareholders. Their ability to add value to our traditional business is enormous and there are also a number of new initiatives where the networks of our shareholders will play a key role.” — I-Net Bridge