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Grindrod to sell tanker as it continues to focus on core strategy

Published May 19, 2022

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GRINDROD Shipping Holdings, the Nasdaq and JSE-listed global provider of mainly dry-bulk maritime transport services, is in a deal to sell a 2016-built medium-range product tanker, Matuku, for $30 million (R477m).

Grindrod has been exiting the tanker segment and using the sale of its tankers to reduce its debt and interest expense as it focuses on its core handy-size and supramax/ultramax dry-bulk segments.

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In a statement yesterday, the group said in anticipation of the sale it had exercised the purchase option for Matuku under its existing lease financing arrangement for $25.4m following the expiration of the bare-boat charter under which the vessel was operated.

Delivery was expected on or about May 30, before onward delivery to its new owners planned on or about June 1, the company said.

The group also said it had also exercised the purchase option on the chartered-in 2015-built supramax bulk carrier, IVS Pinehurst, for $18m, with delivery planned on or about June 18.

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"The vessel will remain chartered-in at its original contract rate until delivery to us," it said.

Grindrod said it had agreed to extend the long-term charter on the 2014-built supramax bulk carrier, IVS Crimson Creek, for a period of 11 to 13 months at a net charter-in rate of $26 276 per day, commencing on May 1

Based in Singapore, Grindrod Shipping predominantly owns and operates a diversified fleet of owned and long-term and short-term chartered-in dry-bulk vessels.

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