Grinrod Shipping extends IVS Bulk joint venture, announces share repurchases
Grindrod Shipping announced the extension of its IVS Bulk joint venture, the closing of a financing arrangement and further share repurchases. Grindrod Shipping has extended the termination date of its IVS Bulk joint venture from November 30 to December 31 as the company continues to progress the transaction agreed in principle with the joint venture partners whereby the company would acquire an additional 33.25% stake from one of the partners with the other partner retaining its 33.25% stake, as well as the negotiations with lenders to refinance all of the existing debt of IVS Bulk and provide us sufficient capital to acquire the additional 33.25% stake. The company provides no assurance that it will complete the acquisition until such time that agreements have been finalized and the financing has been obtained. Further to the previous announcement regarding an agreed financing arrangement in respect of IVS Magpie, the company confirmed that the transaction closed on November 20. On closing, the financing generated approximately $5.4M of cash for the company after settling the debt associated with the vessel. Pursuant to the company's previously approved share repurchase authority granted by shareholders at the last general meeting on May 29, the company has acquired ordinary shares in the open market in addition to those detailed in our previous announcement on October 30. Over the period from and including October 30 through and including November 29, a combined total of 153,915 ordinary shares has been acquired on Nasdaq and the JSE. The repurchased shares were acquired at an average price per share over such period of $7.00, or ZAR102.64 based on an indicative ZAR/USD exchange rate of 14.67, before costs. As a result a combined total of 233,243 ordinary shares has been acquired on Nasdaq and the JSE over the period from the end of the second fiscal quarter through and including November 29 at an average price per share over such period of $6.57, or ZAR96.39 based on an indicative ZAR/USD exchange rate of 14.67, before costs.