The Bidvest Group announced today that the disposal process for Bidvest Bank and FinGlobal is officially underway, with management aiming to identify suitable acquirers by the end of the 2024 calendar year.
The Johannesburg Stock Exchange-listed industrial conglomerate emphasised that any transaction will be subject to the necessary regulatory approvals.
Established 30 years ago, Bidvest operates across seven divisions in South Africa, the UK, Spain, Ireland, and Australia, covering a diverse range of sectors including services, freight, consumer and commercial products, financial services, and automotive retailing.
In July, the Bidvest Group board has approved the process to dispose of Bidvest Bank and its related entity, FinGlobal. This decision is part of a broader strategic restructuring aimed at aligning and strengthening the group’s core business operations.
The short-term insurance businesses within Bidvest’s Financial Services division, which primarily focus on vehicle insurance and related value-added products, will be transferred to the Automotive division. This move supports the Automotive division’s strategy of diversifying into allied automotive services.
The disposal process for Bidvest Life, which had been announced previously, is currently underway.
The group annonced today that headline earnings per share (HEPS )and Normalised HEPS, a measurement used by management to assess the underlying business performance, grew by 6.6% and 4.3%, respectively.
As a result of the growth capex and working capital investment referenced earlier, Return on Funds Employed (ROFE) moderated from 38.3% at year end to 37.3%. Return on Invested Capital (ROIC) of 16.1% compares to 17.3% in the prior year.
“We have a portfolio of excellent, everyday essential assets that are set to benefit from the global megatrends that are becoming evident,” said Bidbvest.
“We continue to pursue operational excellence, while shaping our portfolio for the future. This, we intend to do through innovation that makes a positive impact and derives cost benefits for us and our customers, whilst at the same time, creating social value and mutual benefit for our communities and for those who rely on us and who support us.”
