Grindrod Shipping said yesterday it had acquired two ship management companies from Taylor Maritime Group in a $11.75 million (R209m) cash and shares deal.
The Singapore-based bulker owner plans to acquire Taylor Maritime Management and Tamar Ship Management.
The deals are part of an ongoing integration between Grindrod Shipping and its parent Taylor Maritime Investments (TMI), which spun off from TMG in 2021 to list in London.
Grindrod Shipping owns and operates a diversified fleet of owned long-term and short-term chartered-in dry bulk vessels.
TMI specialises in the acquisition and chartering of vessels in the handysize and supramax bulk carrier segments of the global shipping sector.
Grindrod Shipping said the aggregate maximum value of the consideration for the acquisition would not exceed $13.5m. After the acquisition, which is expected to occur next month, the companies would become wholly-owned subsidiaries of Grindrod. The acquisition is subject to certain closing conditions.
Grindrod’s chairman Kurt Klemme said, “This acquisition will further increase our revenue streams in terms of management income, unlock synergies in our commercial deployment of the dry bulk fleet and we will achieve savings on the technical side with a larger fleet. With the central management of a combined group fleet, we will certainly achieve better returns to our shareholders.”
The group also noted that its CEO, Edward Buttery, had recused himself from all deliberations on this acquisition, as the companies had a Framework Management Agreement with Taylor Maritime Investments.
“In addition, one of our non-executive directors, Paul Over, has also recused himself from this acquisition as he is a non-executive director of Taylor Maritime (HK) Ltd, which is a subsidiary of Taylor Maritime Group Limited,” the group said.
BUSINESS REPORT