Grindrod - shortlist buyers to acquire Mercantile
Shareholders are referred to reports in the local press on Monday, 18 June 2018, that the Portuguese government made public on Friday, 15 June 2018, the names of four parties who had been shortlisted as potential acquirers and who would participate in the second phase (which will include, inter alia, due diligence, engagement with Mercantile management and submission of binding offers) of the process to acquire Mercantile Bank Ltd. (˘Mercantile÷), which is owned by Portuguese state-owned Caixa Geral de Dep=sitos. A consortium comprising Arise BV (˘Arise÷) and Grindrod Ltd.Ăs subsidiaries Grindrod Bank Ltd. (˘Grindrod Bank÷) and Grindrod Financial Holdings Ltd. (˘GFH÷) (Šthe Consortium÷) has been selected as one of the four shortlisted potential acquirers of Mercantile.
Arise is a leading African investment company that partners with sustainable, locally-owned financial services providers in Sub-Saharan Africa. The company, founded by three cornerstone investors namely Rabobank, Norfund and FMO, currently manages assets in excess of USD700 million and is operational in over ten countries. AriseĂs vision is to contribute to the economic growth of Sub- Saharan Africa and the prosperity of its people by increasing financial inclusion and employment, strengthening rural development and poverty alleviation.
MercantileĂs business is considered complementary to that of Grindrod Ltd.Ăs Financial Services division comprising Grindrod Bank and GFH and a merger will create a business well placed to grow and compete in the South African financial services and banking sector.
The Financial Services division remains focused on positioning itself to expand its service offering and optimise value within its areas of business. This includes investigating ways in which further value can be created by introducing a BEE shareholding, in order to propel Financial Services to the next level of growth.