Grindrod Shipping acquires remaining stake in IVS Bulk joint venture
Share this article:
GRINDROD Shipping Holdings, the maritime transport group that operates mainly in dry bulk, would acquire the remaining 31.14 percent stake in its IVS Bulk joint venture, bringing its holding to 100 percent, the group said yesterday.
A subsidiary, Grindrod Shipping, would acquire the remaining shares in IVS Bulk held by an affiliate of Bain Capital Credit for $46.3 million (about R688.1m), comprising $37.2m for the ordinary shares and $9.1m for the preference shares.
The purchase price was based on appraised values as of May 13 this year and reflected the IVS Bulk balance sheet as of April 30 this year. The purchase was subject to interest at Libor + 3 percent until closing, while changes in IVS Bulk’s financial position would accrue to Grindrod Shipping from after April 30 this year.
IVS Bulk intended to redeem the $27.3m preferred share capital held by Grindrod Shipping and Bain using available cash, proceeds from an intended increase of one of IVS Bulk’s credit facilities by $23m, and possibly also available cash on Grindrod Shipping’s balance sheet.
The acquisition of Bain’s ordinary shares was expected to be funded through cash on hand and proceeds from the redemption of the preference shares.
Grindrod chief executive Martyn Wade said the acquisition was a “critical step in the growth and development of Grindrod Shipping at a time of very strong freight rates in the drybulk industry”.
He said IVS Bulk’s 12 vessels were all modern, Japanese built “Eco” vessels that complemented the group’s cargo operations.
Grindrod Shipping’s dry bulk business, which operates under the brand “Island View Shipping” (IVS), includes a core fleet of 31 vessels consisting of 15 handysize dry bulk carriers and 16 supramax/ultramax dry bulk carriers.