London-listed Taylor Maritime Investments (TMI) is looking to fully take over Singapore-based Grindrod Shipping.
The Ed Buttery-led bulker owner has submitted a non-binding offer of $26 per share in the Nasdaq and Johannesburg-listed rival that would create a significant owner of handysize up to ultramax ships.
The proposed transaction is structured as a voluntary general offer consisting of a cash purchase price of $21 per share to be paid by TMI for each share tendered in conjunction with a special cash dividend from Grindrod of $5 per share to its existing shareholders.
Grindrod Shipping owns and operates a diversified fleet of owned and long-term and short-term chartered-in drybulk vessels. The drybulk business, which operates under the brand Island View Shipping (IVS), includes a core fleet of 15 handysize and 16 supramax/ultramax vessels.
Taylor Maritime, which already holds around 4.93m shares in Grindrod, corresponding to a 26% stake, currently has 27 vessels in its portfolio in the handysize and supramax segment.
“The company has entered into exclusive discussions with TMI regarding the proposed transaction,” Grindrod confirmed. However, it noted that definitive terms have not been agreed upon between the parties.
Jefferies is serving as financial advisor to Grindrod, while TMI is being advised by Evercore and Rand Merchant Bank, a division of FirstRand Bank.
