Grindrod Shipping Reaches a 12-Week High Following Taylor Maritime’s $365.9M Purchase Bid

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    Grindrod Shipping Holdings Ltd. NASDAQ:GRIN

    Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN)

    The non-binding offer to purchase Grindrod Shipping (NASDAQ:GRIN) for $26 per share, or approximately $365.9 million, from Taylor Maritime Investments (OTCPK:TMILF), has caused the company’s stock to fly to a nearly 12-week high on Monday.

    Taylor Maritime suggested paying a $21 per share cash purchase price to be paid along with a $5 per share special dividend from GRIN. Currently, Taylor Maritime holds about 26% of GRIN. Shares of GRIN have increased by 61% over the past year and by 31.3% YTD.

    Taylor Maritime and GRIN have engaged in exclusive negotiations over the offer, but no final arrangements have been reached. There is no certainty that the negotiations will result in a deal. In a statement, Taylor Maritime Investments (OTCPK:TMILF) stated that its bid would provide “substantial value and certainty” to GRIN’s shareholders. This should lend some credence at a time of “deteriorating global economic activity and declining dry bulk rates.”

    Additionally, Grindrod Shipping made it clear that it has no plans to continue making disclosures about its conversations with TMI until the company and Taylor Maritime Investments (OTCPK:TMILF) have signed a legally binding agreement regarding the proposed transaction. The company’s financial advisor is Jefferies LLC, and its legal assistance is provided by Fried, Frank, Harris, Shriver & Jacobson LLP, Allen & Gledhill LLP, and Edward Nathan Sonnenbergs Inc.

    An international provider of ocean transportation services, primarily in the dry bulk market, is Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN).

    Grindrod Shipping Records Second-Quarter Wins

    In what it called “another record quarterly success that underscores the stable markets,” Grindrod Shipping reported a net income of $53.3 million for the second quarter. Due to better market conditions in the dry bulk industry, revenue from continuing operations for the quarter increased to $161.58 million from $109.8 million in the prior year.

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    Author Jowi Kwasu
    About the author: I'm a financial freelance writer keen on the latest market developments which i articulate with writing stock updates, press releases and investor news. As a person i live by the code of a sustainable human existence and a carbon neutral universe. When off work, i spend time reading non-fiction books, flying drones, and outdoor cycling.