Grindrod an­nounces deal to change its as­set man­age­ment in­ter­ests

The Star Early Edition - - NEWS - Siseko Njobeni

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 24per­cent 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.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.