GRIN - Taylor Maritime to buy about 23% stake in Grindrod Shipping for ~$78 million in cash

Taylor Maritime Investments (OTCPK:TMILF) agrees to acquire a 22.6% stake in Grindrod Shipping (NASDAQ:GRIN) for a cash consideration of $77.9 million via a private, off-market acquisition from a wholly-owned subsidiary of Remgro Limited, Grindrod Shipping's largest shareholder. The purchase price of $18.0 per share represents a premium of ~17.9% to Grindrod’s closing stock price on December 10, 2021. The company will internally fund the acquisition by selling two Chinese-built vessels for a combined $42.8 million of proceeds, cash on the balance sheet, and short-term drawings on the company's revolving credit facility. Including a 2.2% position already acquired by Taylor Maritime in the open market, It will own 24.8% of Grindrod Shipping’s shares. "The investment in Grindrod Shipping is consistent with TMI's strategy of seeking accretive growth opportunities to increase shareholder returns at a time when dry bulk market fundamentals remain strong with a historically low order book and a robust global demand outlook".

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Taylor Maritime to buy about 23% stake in Grindrod Shipping for ~$78 million in cash