GNDE - GRINDROD LIMITED - Announcement of shortlist of buyers to acquire Mercantile Bank Limited

19/06/2018 08:00:00

GND GNDP 201806190008A
Announcement of shortlist of buyers to acquire Mercantile Bank Limited

Grindrod Limited
(Incorporated in the Republic of South Africa)
(Registration number 1966/009846/06)
Share code: GND & GNDP
ISIN: ZAE000072328 & ZAE 000071106
(“Grindrod” or “the Company”)

Announcement of shortlist of buyers to acquire Mercantile Bank Limited

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 Limited (“Mercantile”), which is owned by Portuguese
state-owned Caixa Geral de Depósitos. A consortium comprising Arise B.V. (“Arise”) and Grindrod
Limited's subsidiaries Grindrod Bank Limited (“Grindrod Bank”) and Grindrod Financial Holdings
Limited (“GFH”) (‘the 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. Arise's 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.

Mercantile's business is considered complementary to that of Grindrod Limited's 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.

By order of the board
19 June 2018
Sponsor: Grindrod Bank Limited

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