Grindrod Shipping Holdings Ltd. Announces Closing of IVS Bulk Acquisition, IVS Pinehurst Charter Extension & Share Repurchases
September 01 2021 - 4:05PM
Grindrod Shipping Holdings Ltd. (NASDAQ: GRIN) (JSE: GSH)
(“Grindrod Shipping” or "Company" or “it” or “we”), a global
provider of maritime transportation services predominantly in the
drybulk sector, announced the following transactions.
The previously announced acquisition of the
remaining 31.14% equity stake in its IVS Bulk joint venture (“IVS
Bulk”) and concurrent redemption of the IVS Bulk preference shares
were concluded on September 1, 2021. The Company elected to close
on the acquisition utilizing cash on hand but still intends to
complete the $23 million upsizing of one of its exiting IVS Bulk
credit facilities by September 30, 2021 to replace the working
capital used to fund the transaction. The Company has received
credit committee approval from its lenders and is in the process of
completing definitive documentation, although there is no assurance
that the financing will be completed as contemplated.
The Company has exercised its option to extend
the firm charter-in period of the 2015-built supramax drybulk
vessel IVS Pinehurst for 11 to 13 months at a pre-agreed fixed
rate, starting from approximately January 3, 2022. The Company
retains the existing purchase option to acquire the vessel at a
fixed price up to the end of the charter-in period.
Pursuant to the Company's previously approved
share repurchase authority granted by shareholders at the last
Annual General Meeting on May 20, 2021, the Company has acquired a
combined total of 91,871 ordinary shares in the open market on
NASDAQ and the JSE over the period from August 24, 2021 to August
30, 2021. The repurchased shares were acquired at an average price
per share of $14.87, or ZAR 218.15 based on an assumed ZAR/USD
exchange rate of 14.67, before costs. The timing and amount of any
repurchases are in the sole discretion of the Company, and depend
on legal requirements, market conditions, stock price, alternative
uses of capital and other factors. Repurchases of ordinary shares
may take place in privately negotiated transactions and/or open
market transactions. The repurchase authority expires at the next
Annual General Meeting, unless renewed or varied or revoked by the
shareholders in a general meeting, and may be suspended or
terminated by the Company at any time without prior notice.
Martyn Wade, the Company’s Chief Executive
Officer, commented:
“We are very pleased to announce the completion
of the acquisition of the remaining shares in IVS Bulk and 100%
ownership of all the owned vessels in the Grindrod Shipping fleet.
We would like to thank the team at Bain Capital Credit for their
strong partnership over the past eight years in IVS Bulk and wish
them all the best in their future endeavors.”
About Grindrod Shipping Holdings
Ltd.
Grindrod Shipping operates a fleet of owned and
long-term and short-term chartered-in drybulk vessels predominantly
in the handysize and supramax/ultramax segments. The drybulk
business, which operates under the brand “Island View Shipping”
(“IVS”), includes a Core Fleet of 31 vessels consisting of 15
handysize drybulk carriers and 16 supramax/ultramax drybulk
carriers. The Company also owns one medium range product tanker on
bareboat charter. The Company is based in Singapore, with offices
in London, Durban, Tokyo, Cape Town and Rotterdam. Grindrod
Shipping is listed on NASDAQ under the ticker “GRIN” and on the JSE
under the ticker “GSH”.
Forward-Looking Statements
The statements in this press release that are
not historical facts may be forward-looking statements. The Private
Securities Litigation Reform Act of 1995 provides safe harbor
protections for forward-looking statements in order to encourage
companies to provide prospective information about their business.
The Company desires to take advantage of the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995 and is
including this cautionary statement in connection with this safe
harbor legislation. The forward-looking statements in this press
release are based upon various assumptions, including, without
limitation, Grindrod Shipping management's examination of
historical trends, data contained in the Company's records and
other data available from third parties. Although the Company
believes that these assumptions were reasonable when made, because
these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible
to predict and are beyond the Company's control, the Company cannot
assure you that it will achieve or accomplish these expectations,
beliefs or projections. These forward-looking statements involve
risks and uncertainties that could cause actual results to differ
materially from those discussed in the forward-looking statements.
These risks and uncertainties include, among others, those
discussed in Grindrod Shipping's public filings with the SEC.
Except as required by law, Grindrod Shipping undertakes no
obligation to update publicly or release any revisions to these
forward-looking statements to reflect events or circumstances after
the date of this press release or to reflect the occurrence of
unanticipated events.
Company Contact:Martyn Wade / Stephen GriffithsCEO
/ CFOGrindrod Shipping Holdings Ltd.200 Cantonment Road, #03-01
SouthpointSingapore, 089763Email:
ir@grindrodshipping.com Website:
www.grinshipping.com |
Investor Relations / Media Contact: Nicolas
Bornozis / Daniela GuerreroCapital Link, Inc. 230 Park Avenue,
Suite 1536 New York, N.Y. 10169 Tel.: (212) 661-7566 Fax: (212)
661-7526 Email: grindrod@capitallink.com |
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