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Grindrod Shipping Holdings said on Monday Taylor Maritime Investment Ltd had made a non-binding indicative proposal to acquire all shares it does not already own in the Singapore-based shipping firm.
Shares in Grindrod Shipping in surged 21% to R 400.00 on Monday afternoon in Johannesburg.
Taylor Maritime Investment is offering $26.00, or R 436.19, per share, giving Grindrod Shipping total value of R 842 billion. This offer will be paid by means of a tender offer of $21.00, of R 352.31, to be paid in conjunction with a special cash dividend from the company of $5.00, or R 83.88 a share. It already owns a 27% stake in Grindrod Shipping.
Grindrod Shipping, which is listed on Nasdaq and the Johannesburg Stock Exchange, said it had entered into exclusive discussions with Taylor Maritime Investment regarding the proposed deal.
However, it said, definitive terms for the proposed transaction had not been agreed upon between the parties.
‘There is no certainty that any transaction will result from these discussions,’ Grindrod Shipping said.
Guernsey-based Taylor Maritime Investment acquired the 23% stake in Grindrod Shipping for $77.9 million, or around R 1.24 billion, in an off-market deal from a wholly-owned subsidiary of Stellenbosch-based blue-chip investor Remgro Ltd.
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