Grindrod: Calmer waters ahead?
Prospects are good because few new ships are coming onto the market, unlike in the years between 2003 and 2008
Will long-suffering Grindrod shareholders finally get the investment break they’ve been craving? The centenarian company, whose shares have more than halved since they hit a peak of R28.78 in 2014, has formally hewn its business into a shipping and logistics operation with the listing of Grindrod Shipping on the Nasdaq last week. Thanks to a long-awaited upturn in demand for shipping vessels, the timing of Grindrod’s listing "is about as good as you can get", says long-time watcher, equity analyst Arnold Werbeloff of Vunani Securities. Being listed on the Nasdaq means the company is now on the radar of global shipping investors, who’ll be able to better benchmark it against the 19 shipping stocks also listed on the American exchange. In terms of the separation, Grindrod shareholders received one shipping stock for every 40 Grindrod Ltd shares they already owned.
What investors now have is access to the business that owns Grindrod’s port assets, Grindrod Bank, its marine fuels,...
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