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August 30, 2022

TMI makes buyout offer for Grindrod Shipping

TMI and its subsidiaries already own a 26% stake in Grindrod.

Taylor Maritime Investments (TMI) has made a non-binding indicative bid to acquire the remaining stake in Singapore-based rival Grindrod Shipping Holdings.

TMI and its subsidiaries already own a 26% stake in Grindrod, which mainly offers maritime transportation services in the dry bulk sector.

Under the latest proposal, TMI hopes to purchase, for $26 a share, both the issued and to be issued share capital of Grindrod that it does not already own.

This would include a cash payment of $21 per share, as well as a special cash dividend from Grindrod of $5 per share to its existing shareholders.

The proposed offer values Grindrod at around $494m.

Grindrod has started exclusive talks with TMI over the proposed deal, though the entities have still not agreed on definitive terms.

The prospect of a deal materialising through the negotiations is still uncertain.

Grindrod stated that ‘the firm does not intend to make further announcements in relation to its discussions with TMI unless and until the Company and TMI enter into a definitive agreement with respect to the proposed transaction except to the extent required by the Singapore Code on take-overs and mergers and applicable US securities laws’.

Grindrod Shipping is the owner and operator of a diversified fleet of owned, long-term and short-term chartered-in drybulk vessels in the handysize and supramax/ultramax segments.

The company manages its drybulk business under the brand known as Island View Shipping, which has 31 vessels, consisting of 15 handysize drybulk carriers and 16 supramax/ultramax drybulk carriers.

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