Singapore-headquartered provider of maritime transportation services in the drybulk and product tanker sectors, Grindrod Shipping Holdings is planning acquisition of an additional 33.25% stake in its IVS Bulk joint venture.
"Grindrod Shipping is progressing negotiations to acquire all of the 33.25% ordinary and preference shares in IVS Bulk held by one of its two JV partners for approximately $44.2 million, thereby increasing our stake in the JV to 66.75%," said a press release from the provider of dry-bulk and liquid shipping services.
In the event the transaction is implemented as anticipated, we will consolidate IVS Bulk’s financial results into our financial results going forward.
Term sheets have been executed with lenders and the parties are in the process of negotiating the financing and other transaction documentation.
All of the planned new finance facilities and the agreement to acquire the additional 33.25% interest in IVS Bulk will be inter-conditional and in order to facilitate the closing of the acquisition and related financings, the termination date of the existing IVS Bulk JV has been extended until January 31, 2020.
"We can provide no assurance that we will complete the acquisition until such time that the agreements have been concluded and implemented," it said.
Grindrod Shipping owns and operates a diversified fleet of owned and long-term and short-term chartered-in drybulk vessels and product tankers.
The drybulk business, which operates under the brand Island View Shipping (IVS) includes a fleet of 17 handysize drybulk carriers and 15 supramax/ultramax drybulk carriers on the water with two chartered-in ultramax drybulk carriers under construction in Japan due be delivered in 2020.
The tanker business, which operates under the brand “Unicorn Shipping” includes a fleet of seven medium range tankers and two small tankers. The Company is based in Singapore, with offices in London, Durban, Tokyo, Cape Town and Rotterdam.
