Grindrod ups stake in shipping joint venture to two thirds
Grindrod Shipping says it has agreed to buy out one of the three equity partners in its IVS Bulk joint venture for $44.1m (R635m), a move it says will simplify its operations.
The sale will bring Grindrod Shipping's stake to 67.75% from 33.5% previously, and be funded through a combination of cash on hand, proceeds from recapitalisation at IVS Bulk, and a new loan.
Grindrod Shipping owns and operates a diversified fleet of owned and long-term and short-term chartered-in dry bulk vessels and product tankers. The dry bulk business operates under the brand “Island View Shipping” (IVS).
“We will have reduced the number of vessels accounted for under unconsolidated joint ventures from 19 to one over approximately the last two years, a core focus of ours which has the benefit of simplifying the company’s financials and operations,” said Grindrod Shipping CEO Martyn Wade in a statement.