JSE-listed companies Bidvest and Grindrod have failed to reach an agreement on the proposed acquisition of Grindrod Financial Holdings, or Grindrod Bank, by Bidvest Bank, a Bidvest and GFS Holdings company, and discussions have been discontinued, Grindrod announced on Thursday.
The company stated that the reason for this was that Bidvest had been unable to satisfy itself as to the potential reputational impact from recent negative publicity relating to its South African Social Security Agency contract.
However, Grindrod stated that it was confident that the issues raised in the press did not pertain to Grindrod Bank’s role in the contract.
Bidvest also noted that no problems which would cause the parties to terminate discussions were identified in the course of its due diligence process of Grindrod Bank.
“Grindrod will continue its strategy to grow Grindrod Bank’s business, with a number of strategic alternatives and capital support, for the benefit of Grindrod’s stakeholders,” the company concluded.