Bidvest Bank to prioritise saving jobs as it looks for buyer
Bidvest Group is selling Bidvest Bank and FinGlobal to focus on core businesses like hygiene and facilities management. The bank prioritizes a buyer who minimizes job cuts.
Bidvest Group, a South African conglomerate, announced the sale of Bidvest Bank and its financial migration services arm, FinGlobal, as part of a strategic restructuring process. The group aims to concentrate on its core businesses in hygiene, facilities management, and plumbing product distribution.
Prioritizing Employees During Sale
While seeking a fair price, Bidvest Group prioritizes finding a buyer who will minimize job cuts. The bank employs over 1,500 people, and the group acknowledges their valuable contributions. Bidvest Bank CEO Mpumi Madisa emphasized their commitment to minimizing the impact on personnel during a media briefing.
Solid Financial Performance Despite Sale
The decision to sell comes despite Bidvest Bank's recent strong performance. The bank reported positive trading profit and operating income. However, a shift in strategic focus by Bidvest Group would limit future investments in the bank, hindering its growth potential in a competitive market.
Transaction Timeline and Strategic Shift
Bidvest Group expects to find a suitable buyer by the end of 2024, with the transaction closing in nine months subject to regulatory approvals. The sale of Bidvest Bank and FinGlobal coincides with Bidvest Group's acquisition of Citron, a UK-based hygiene solutions company, reflecting their new strategic direction.
What's Your Reaction?
