Grindrod stock plunges but shareholders can expect good special dividend
The separation of Grindrod’s shipping business into a Nasdaq-and JSE-listed company resulted in the share price of the remaining JSE-listed group falling as much as 36% to R8.21 on Wednesday morning.
But Grindrod shareholders should be more than compensated for this R4.56 drop when they receive shares of the unbundled company.
The new shares, with JSE ticker GSH, are scheduled to start trading on June 19.
Grindrod shareholders will receive one GSH share for every 40 shares held. Each GSH share is valued at $16.82.
When announcing the proposed unbundling of its shipping business in January, Grindrod said the separation "would allow shareholders to identify more clearly the different characteristics of the Freight Services and Financial Services businesses and the Grindrod shipping business and to value them separately".
The shares of Grindrod’s shipping business will trade on Nasdaq under the code GRIN.