Grindrod plans to give GRIN to shareholders


Grindrod plans to give GRIN to shareholders

Published Date: 2018-03-27 | Source: Stephen Gunnion | Author: Stephen Gunnion

Grindrod plans to give GRIN to shareholders

The freight, financial and shipping group wants to proceed with the separation of its businesses and a NASDAQ listing

Grindrod says it's decided to go ahead with a separate listing of its shipping business on the US's NASDAQ and a secondary listing on the JSE. It expects the deal to be wound up around the 18th of June.

The freight, financial services and shipping group says it will dispose of its international drybulk and tanker shipping businesses to newly incorporated Singapore registered company, Grindrod Shipping holdings (GRIN), which has applied to list its shares on NASDAQ. Shareholders will then hold both Grindrod shares and listed GRIN shares.

Grindrod says the move will help investors to identify more clearly the different characteristics of the Freight Services and Financial Services businesses and the Grindrod Shipping Business and to value them separately. It will also allow management of each business to focus solely on that business and pursue their own strategies. Shareholders need to approve the deal at a general meeting, with a 50% plus 1 majority needed.

Details of the separate listing were released along with Grindrod's annual results after the close of trade on Friday. It reported a reduced headline loss per share of 47.4c for the year ended December as a R203 million headline loss from its shipping businesses and its discontinued rail leasing operation weighted on its performance. It said the continuing business, comprising Maputo Port and Terminals, Logistics, Marine Fuels and Agricultural Logistics, and Financial Services, posted a 173% jump in headline earnings to R571 million.

The Shipping division narrowed its headline loss to R203 million from R570 million due to rising dry-bulk rates. It said the business had remained sustainable during a prolonged period of adverse conditions which saw the failure of several of its peers.

Its shares rose 5.2% to R13.39 yesterday.

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