"Discussions are proceeding in this matter," it said today, giving no details about how much the stake was worth.

Officials of Allan Gray, the biggest privately owned investment manager in southern Africa, were not immediately available to comment.

Grayprop (Allan Gray Property Trust), has a market capitalisation of R6,15bn, with major interests in shopping centres such as the Westgate and Centurion shopping malls in the Johannesburg and Pretoria areas respectively. It has been managed by Allan Gray Property Trust Management since 1997, when Allan Gray bought a controlling stake in the management firm.

Shares in Grayprop closed at R6,18 yesterday.