South Africa’s Grindrod to Spin Off Shipping Business

Grindrod shipping
Grindrod has a fleet of 52 owned and time-chartered vessels ranging in type and size including bulk carriers, tankers and bunker barges. Photo: Grindrod

Reuters

JOHANNESBURG, Aug 23 (Reuters) – Grindrod, the South Africa-listed freight logistics and shipping services firm, is planning to separate and list its shipping business in order to unlock its value, the company said on Wednesday.

Grindrod, which also has a financial services business, has held the view for many years that the value of its shipping services was not fairly reflected in its share price.

Executive Chairman Mike Hankinson said the board has resolved to investigate a separate listing of the business offshore.

“We have appointed professional advisors in and outside of South Africa in the fields of shipping, legal and financial to work with us on the unbundling of the Shipping business onto an international exchange that supports shipping groups with an inward listing into South Africa,” Hankinson said.

“The process is well progressed and we are planning to complete the process in the first half of 2018.”

The decision to review the business came as Grindrod narrowed its headline loss to 128.9 million rand or 17.2 cents per share for the half year ending June 30 from a loss of 381 million or 50.8 cents a year earlier, supported by stronger commodity markets, it said.

Shares in the company closed 2.47 percent weaker at 12.61 rand. (Reporting by Nqobile Dludla; Editing by Elaine Hardcastle)

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