Taylor Maritime Investments (TMI) has signed a transaction implementation agreement to acquire Singapore-based Grindrod Shipping Holdings.
This deal values bulker owner Grindrod Shipping at approximately $506m.
Via its wholly-owned subsidiary Good Falkirk, TMI made a voluntary conditional cash offer for all of the issued ordinary shares in the capital of Grindrod Shipping.
Good Falkirk first purchased a 26% ownership stake in Grindrod Shipping in the fourth quarter of last year.
In August this year, TMI placed a non-binding indicative proposal to acquire 100% of the outstanding shares of Grindrod Shipping, which is not already owned by Good Falkirk.
As per the terms of the implementation agreement, Grindrod will secure $21.00 in cash for each share tendered in the offer.
Grindrod also agreed to pay a special dividend of $5 per share to its shareholders.
The transaction value of $26 per share is said to represent a 26.8% premium to the last traded price per share on 26 August this year.
Grindrod Shipping is the owner and operator of a diversified fleet of owned, long-term and short-term chartered-in drybulk vessels, mainly in the categories of handysize and supramax/ultramax.
The company manages its drybulk business under the brand Island View Shipping, including a core fleet of 31 vessels consisting of 15 handysize drybulk carriers and 16 supramax/ultramax drybulk carriers.
Grindrod Shipping has offices in London, Durban, Tokyo, and Rotterdam, as well as Singapore.