Grindrod delisting on the cards as Taylor Maritime secures 83%
London-listed Taylor Maritime Investments (TMI) has closed its offer to acquire all of the issued ordinary shares in Grindrod Shipping, increasing its stake in the Singapore-based company to 83.23%.
The Ed Buttery-led bulker owner tabled its voluntary conditional cash offer of $26 per share in October, valuing Grindrod at $506m. The offer became unconditional late last month, with TMI holding 73.78% of its Nasdaq and Johannesburg-listed rival. TMI picked up around 9.45% of Grindrod’s outstanding shares following the subsequent offering, which concluded on December 19.
Despite not reaching the compulsory acquisition threshold of at least 90%, the company said it may seek to delist Grindrod, subject to satisfying legal and regulatory requirements. The Guernsey-incorporated TMI also noted that Grindrod shares may no longer meet the listing requirements of Nasdaq and/or JSE and may be delisted at the discretion of those exchanges and their relevant regulatory authorities.
“Delisting and deregistration of the shares would likely significantly reduce the liquidity and marketability of any shares that have not been tendered pursuant to the offer,” TMI and Grindrod said in a joint statement.
The combination of TMI and Grindrod will create a significant mid-sized dry bulk player with a fleet of 57 ships.
“This is a stand-out opportunity in the geared dry bulk segment, whose defensive characteristics and potential to deliver shareholder value through the cycle are well-known. It is now time for us to focus on deleveraging while delivering compelling cash yields as we work towards crystallising the growth opportunity our enlarged scale will afford,” commented Buttery, chief executive of TMI.
