Grindrod announces deal to change its asset management interests

GRINDROD Asset Management yesterday announced a deal that would culminate in Infinitus Holdings holding a 76percent stake in Grindrod.

Infinitus is focused on highgrowth businesses in the consumer, industrial and financial services sectors. At the end of last month, Grindrod Asset Management had assets under management of R14.5billion.

Grindrod said as of this month the asset management business would trade as Bridge Fund Managers.

Grindrod, through subsidiary GFS Holdings, would exchange its entire Grindrod Asset Management for Infinitus shares. Post the transaction, Infinitus would hold 76 percent of Bridge Fund Managers equity, with management and staff retaining the remaining 24 percent interest.

After the transaction, GFS will own 49 percent of Infinitus and Grindrod will retain a major indirect stake in Bridge Fund Managers.

“So Grindrod is… changing the way it holds its interest. This is an important step to free up the business to develop its own identity as Bridge Fund Managers and pursue sensible growth opportunities while retaining its loyal client base. Grindrod will continue to support the business in every way,” GFS managing director David Polkinghorne said.

Bridge Fund Managers chief executive Mark Logan said the deal was meant to help increase assets under management and grow revenue through access to more retirement funds, retail investors and high-net worth individuals.

“Bridge Fund Managers is an excellent asset that will form the core investment in our financial services pillar… Infinitus is a long-term investor and we are confident that with the talented and highly motivated Bridge Fund Managers management team, our networks and proven track record in adding value to our investments, that this will be a great addition to the Infinitus portfolio,” Infinitus’s chief executive Greg Heron said.

Paul Stewart, the executive director and head of fund management at Bridge Fund Managers, said there was a disconnect between clients and asset managers.

“There are expectation, understanding and trust gaps, which often lead to misaligned outcomes… We aim to bridge the gap between what the industry promises and actual client outcomes,” he said.

Grindrod shares fell 1.58 percent yesterday to R13.68.