In August last year, Grindrod announced its intention to investigate a possible listing of its Shipping division on an offshore stock exchange where the business could be compared to its peers and fair value recognised. There is no other shipping business listed on the JSE, so investors cannot have exposure to shipping without exposure to freight and financial services. Likewise, if investors chose not to have exposure to shipping, they would have to sell their Grindrod shares.
In March, Grindrod announced that the board had approved the listing of Grindrod Shipping on Nasdaq with an inward listing on the JSE. To proceed, shareholders were required to vote. Details of this process were stipulated in pre-listing statements posted to shareholders, advertised in newspapers and posted on the Grindrod website in May 2018.
Grindrod shareholders were advised that they would receive one share in the new company, Grindrod Shipping Holding, for every 40 Grindrod shares held.
The Grindrod Shipping and Grindrod Limited executives presented all the financial facts to the institutional shareholders and received proxies in favour of the listing. In the general meeting held on 4 June, shareholders voted 99.71% in favour.
The new company started trading on the Nasdaq on 18 June and on the JSE on 19 June under the ticker GRIN and GSH respectively.
Grindrod Shipping operates a fleet of 49 vessels consisting of owned drybulk carriers, long term chartered-in drybulk carriers, owned tankers and long-term chartered-in tankers.
We wish the Grindrod Shipping executive and management team all the very best and look forward to seeing the business grow from strength to strength.