South African freight and logistics company Grindrod signed an agreement to sell its 20.3% stake in grain services provider NWK to NWK Holdings for R204-million (USD 14 million).
According to the press release, the sale is subject to the fulfillment of conditions precedent which is expected to be concluded by the end of the last quarter of 2019.
During August 2019, Grindrod announced as part of its strategic review process, its intention to dispose of certain non-core businesses which included its agricultural investments in NWK and Senwes.
Said Andrew Waller, CEO Grindrod Limited: “As was communicated at the interim results announcement, Grindrod’s focus is on unlocking sub-Saharan African trade corridors which requires the alignment of its investments along key corridors effectively providing logistical solutions for cargo flow. NWK is a good business but it does not fit into these corridors. We are very pleased to have concluded this agreement with NWK and NWK Holdings and expect to finalize the transaction by the end of September.”
NWK focuses on the storage and handling of grain, and the provision of finance, market access, production inputs and other value-added services primarily to grain producers. The business has a long and proud history dating back to 1909 and has been instrumental to the development of the agricultural sectors in South Africa.