(Alliance News) - Taylor Maritime Investments Ltd announced on Monday it had agreed to acquire 23% stake in Durban-based shipping firm Grindrod Shipping Holdings Ltd for USD77.9 million, around ZAR1.24 billion.
Hong Kong-based Taylor Maritime bought a stake in Grindrod Shipping, which is listed on Nasdaq and the Johannesburg Stock Exchange, in an off-market deal from a wholly-owned subsidiary of Stellenbosch-based blue-chip investor Remgro Ltd, Grindrod Shipping's largest shareholder.
The acquisition will be internally funded from the sale of two Chinese built vessels for combined USD42.8 million of proceeds, cash on the balance sheet and short-term drawings on Taylor Maritime's revolving credit facility
The London-based dry bulk shipping company said the acquisition is expected to close early next year and no later than February 28.
In the same statement, Taylor Maritime also announced the delivery on November 29 of two geared handysize bulk carriers to its trading fleet.
These two ships increase the total delivered fleet to 29 vessels, including the two Chinese built ships committed for sale.
Taylor shares were flat at HKD1.26 each in London on Monday morning, while Grindrod Shipping shares surged 4.3% to ZAR243.98 each in Johannesburg. Remgro was up 0.3% to ZAR128.28.
By Artwell Dlamini; artwelldlamini@alliancenews.com
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Taylor Maritim (TMI)