GRIN - Grindrod Shipping (GRIN) - Largest Shareholder Selling At A Premium
Largest shareholder selling at a premium. Remgro LTD, the largest shareholder, has lined up the sale of a 22.6% stake in GRIN held by a subsidiary to Taylor Maritime (TMI) for $77.9 million in cash in a private transaction. The sale of 4.33 million GRIN shares at a price of ~$18.00/share represents a ~18% premium versus the December 10th closing price of $15.26/share and a 33% premium to the September secondary offering by GRIN's former parent at $13.50/share. The transaction should close in early 1Q2022, not later than February 28th, after TMI closes a pending asset sale for ~$43 million.Buyer is an income oriented closed end fund. The buyer is Taylor Maritime Investments Limited (TMI), a closed ended investment company listed on the London Stock Exchange (LSE). As of November 25th and prior to the sale of two assets, Taylor owns 27 owned and 5 to be delivered vessels (30 Handys and two Supra). TMI’s strategy includes acquiring assets at below long-term average prices and depreciated replacement cost, while delivering current income and capital growth potential. This move fits TMI's income strategy and boosts TMI's ownership interest to 24.8%.Transaction positive for GRIN shareholders. There is no economic impact on GRIN, but the addition of Taylor Maritime (TMI) as the largest shareholder at 24.6% and the high premium is positive. Not only does it remove the overhang of the likely sale by a large shareholder, the transaction adds a strategic long-term investor who views GRIN's current asset value and dividend potential as attractive. While difficult to predict, the implications for GRIN's growth potential are limited since the TMI fleet is older and the corporate structure is more complex.2021 moves enhance competitive position and investor appeal — entering 2022 from a position of strength. While GRIN entered the year as a pure play dry bulk company after consolidating joint ventures and selling non-core tanker assets, moves in 2021 further enhanced the competitive position and broadened investor appeal. With a larger owned fleet, a consistent cargo focused strategy and solid financial position, GRIN is well positioned to benefit from attractive dry bulk market fundamentals in 2022. In addition, there are built in growth opportunities from options to acquire five chartered-in vessels. Read More >>