Johannesburg - Grindrod Asset Management and the Plexus Group announced on Thursday that agreement has been reached to merge their respective asset management businesses, including Plexus Global Asset Management domiciled in Hong Kong.
The merger has been agreed in principle and will see each business bringing in excess of R4bn of assets under management or advice to the consolidated investment management business.
The new entity will operate under the Grindrod Asset Management brand.
Prieur du Plessis, chairperson of the Plexus Group, said: "The merging of these two boutique entities will create a strong player in the asset management industry.
"We have identified many synergies over the past few years and it became clear that a formal merger of the complementary Plexus and Grindrod Asset Management investment teams and supporting services would be beneficial to both shareholders and clients alike."
Senior executives from both Grindrod Asset Management and Plexus will fill the leadership positions in the new entity. Du Plessis will be the non-executive chairperson, with Mark Logan of Grindrod Asset Management and Paul Stewart of Plexus Asset Management as executive directors.
Grindrod Asset Management's Ian Anderson will take the role of chief investment officer, while Ian Pallot of Plexus will head up finance and operations.