Announcement

Tuesday, September 20, 2011

Grindrod to sell shares worth ZAR 2 billion to Remgro Ltd



Bloomberg reported that Grindrod Ltd Africa largest shipping company plans to sell new shares worth ZAR 2 billion to Remgro Ltd to fund projects including the expansion of a coal terminal in Mozambique.

Remgro, the South African investment company will pay ZAR 15 a share giving it a 22% stake in Durban, South Africa based Grindrod. Grindrod existing shareholders will have the option of buying shares on the same terms and Remgro stake will be reduced in line with demand from the investors.

The company said Grindrod plans to spend ZAR 10 billion over next five years to expand ports and terminals capacity especially at the Maputo Coal Terminal.

According to the statement the transaction needs approval from three quarters of Grindrod shareholders before it can go ahead.

(Sourced from steelguru.com)

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