Grindrod Shipping has snapped up two ship-management operations from the private Taylor Maritime Group (TMG) in Hong Kong.
The deals are part of an ongoing integration between the Singapore bulker owner and its parent, Taylor Maritime Investments (TMI), which spun off from TMG in 2021 to list in London.
Nasdaq-listed Grindrod is buying 100% of Taylor Maritime Management and Tamar Ship Management from TMG. Temeraire Holdings is also a seller in the case of Tamar.
The companies are costing $11.75m in cash and shares.
TMI chief executive Ed Buttery recused himself from the transaction, as the management companies have a framework deal with TMI to act as commercial and technical manager for its fleet of handysizes.
Paul Over — a Grindrod director — also recused himself, as he is also a director of TMG subsidiary Taylor Maritime (HK).
Grindrod chairman Kurt Klemme said he was pleased with the deal.
Klemme added that the current operations of the TMG companies “are aligned with our technical ship-management practice and our commercial strategy”.
“This acquisition will further increase our revenue streams in terms of ship-management income, unlock synergies in our commercial deployment of the dry bulk fleet and we will achieve savings on the technical side with a larger fleet,” Klemme said.
Better returns for shareholders
“With the central management of a combined group fleet, we will certainly achieve better returns to our shareholders.”
TMI completed the acquisition of Grindrod in December last year, merging its handysizes with the supramaxes and ultramaxes of its subsidiaries.
Buttery told TradeWinds last week that integration was working well, with functions such as chartering being handled in tandem.
The balance sheets of the companies remain separate.
