Grindrod extends termination date for joint venture deal
Grindrod Shipping has extended the termination date of its IVS Bulk joint venture to the end of December, saying on Monday it cannot give any assurance the acquisition would be completed.
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).
Grindrod is seeking to acquire an additional 33.25% stake in the venture, and is negotiating with lenders to refinance the debt of IVS Bulk, which would allow it to acquire the stake. Should the transaction proceed, Grindrod’s share in the venture would increase to 66.75%.
The company previously extended the termination date from the end of September to the end of November.
“We can provide no assurance that we will complete the acquisition until such time that agreements have been finalised and the financing has been obtained,” Grindrod said.
As of the end of September, IVS had a fleet of 17 handysize dry bulk carriers and 14 supramax/ultramax dry bulk carriers on the water, with three ultramax dry bulk carriers under construction in Japan due be delivered this year and next.