TMI and Grindrod said that even though the compulsory acquisition threshold had not been met, which is at least 90%, Grindrod shares might no longer meet the listing requirements of Nasdaq and/or JSE and might be delisted at the discretion of those exchanges. Photo: Supplied
Taylor Maritime Investments (TMI) has announced that it might delist Grindrod shipping shares from Nasdaq and or JSE, after it closed its offer to acquire all of the issued ordinary shares in Grindrod Shipping, increasing its stake to 83.23%.
In late afternoon trade Gridrod Shipping’s shares on the JSE yesterday plunged 10.02% to R322.66.
In a joint statement, TMI and Grindrod said that even though the compulsory acquisition threshold had not been met, which is at least 90%, Grindrod shares might no longer meet the listing requirements of Nasdaq and/or JSE and might be delisted at the discretion of those exchanges and their relevant regulatory authorities.
“Delisting and deregistration of the shares would likely significantly reduce the liquidity and marketability of any shares that have not been tendered pursuant to the offer,” TMI and Grindrod said.
The companies combined would create a dry bulk business with 57 ships.
Grindrod Shipping owns and operates a diversified fleet of owned and long-term and short-term chartered-in drybulk vessels.
TMI specialises in the acquisition and chartering of vessels in the handysize and supramax bulk carrier segments of the global shipping sector.
TMI CEO Ed Buttery said: “This is a stand-out opportunity in the geared dry bulk segment, whose defensive characteristics and potential to deliver shareholder value through the cycle are well-known. It is now time for us to focus on deleveraging while delivering compelling cash yields as we work towards crystallising the growth opportunity our enlarged scale will afford.”
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