Bidvest: Group drops Grindrod banking deal

BIDVEST Group abandoned its planned acquisition of the banking unit of freight operator Grindrod over concerns that the cancellation of a South African Social Security Agency (Sassa) contract would hurt its image. “Bidvest has been unable to satisfy itself as to the potential reputational impact from recent negative publicity” relating to the contract, the companies said in a joint statement yesterday. “Grindrod is comfortable that the issues raised in the press do not pertain to Grindrod Bank’s role in the contract.” The Constitutional Court in April ordered the agency to cancel a R10 billion payment services deal with US-listed Net 1 UEPS Technologies and to hold a new tender. Grindrod provides banking services to Net 1 and Sassa. Bidvest agreed to a purchase of Grindrod’s banking unit in July. Grindrod shares closed unchanged at R21.50. Bidvest stock gained 2.72 percent to R284.97. – Bloomberg