AsiaDry Cargo

Grindrod Shipping increases ownership in IVS Bulk to 66.75%

Grindrod Shipping Holdings has announced it has acquired an additional 33.25 percent stake in its IVS Bulk joint venture from the partners for a price of $44.1m, increasing its ownership in the JV to 66.75 percent.

The acquisition will be funded through a combination of cash on hand, proceeds received from a refinancing of the IVS Bulk capital structure and a new loan.

IVS Bulk has also agreed comprehensive refinancing agreements with its lenders in order to optimise its capital structure. The two existing credit facilities of IVS Bulk will be refinanced with two new senior secured loans totaling $127.3m, representing an approximate 55 percent loan-to-value at drawdown with maturity scheduled for 2025.

Additionally, Grindrod Shipping secured a new financing of $35.8m with an affiliate of the remaining partner in IVS Bulk.

Separately, Grindrod Shipping has sold its 2010-built small product tanker Kowie to an unaffiliated third party for a price of $9.2m. Brokers indicate the vessel went to Chinese interests.

“The acquisition of one of our partners’ 33.25% stake in IVS Bulk, and corresponding consolidation of the jv’s financial results, represents a critical step in the growth and development of Grindrod Shipping. We will have reduced the number of vessels accounted for under unconsolidated joint ventures from 19 to one over approximately the last two years, a core focus of ours which has the benefit of simplifying the company’s financials and operations,” said Martyn Wade, CEO of Grindrod Shipping.

 

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Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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