Grindrod Shipping has sealed a $44.1m deal to take over bulker joint venture IVS Bulk.
The Nasdaq-listed shipowner is acquiring a nearly 33.3% stake in the company, which has 12 ships.
That will bring its holding to just under 66.8% as Grindrod continues its strategy of moving vessels under its full control to improve financial results.
The seller is an unnamed partner in the venture.
At the start of the year, Grindrod had said it intended to pay $44.2m for the shares.
The Singapore-based tanker and bulker owner had extended the deadline to close the deal to 31 January. It was the second time the deadline had been pushed back since it was announced last August.
The agreement with the remaining partner will be extended by 12 months, with Grindrod now controlling key aspects of corporate governance.
The two other companies involved are Sankaty European Investments III and Regiment Capital, according to a prospectus for an initial public offering.
New financing agreed
The transaction is funded by cash, proceeds received from a refinancing of the IVS Bulk capital structure, and new borrowing.
The two existing credit facilities of IVS Bulk will be refinanced with two new senior secured loans totalling $127m, one to each partner.
In addition, Grindrod has agreed to new financing of $35.8m with an affiliate of the remaining partner. It matures in June 2021.
Chief executive Wade said the deal represented "a critical step in the growth and development of Grindrod Shipping".
"We will have reduced the number of vessels accounted for under unconsolidated joint ventures from 19 to one over approximately the last two years, a core focus of ours which has the benefit of simplifying the company’s financials and operations," he said.
IVS Bulk’s 12 vessels are all modern, Japanese-built eco-ships that complement its cargo operations, Wade added.
The company also said it had agreed to sell its 16,900-dwt, 2010-built product tanker Kowie for $9.2m. The ship is worth $9.16m, according to VesselsValue.
This reduces the fleet of its tanker arm, Unicorn Shipping, to seven MRs and a small product carrier.
