Grindrod Shipping has acquired the remaining 31.14% equity stake in its IVS Bulk joint venture, giving it full control of the 12-strong "eco" bulker fleet.
The Singapore-based shipowner is acquiring the remaining shares from Bain Capital Credit for $46.3m, comprising of $37.2m for the ordinary equity shares and $9.1m.
Grindrod Shipping said the total purchase consideration is subject to interest at Libor + 3% until closing, while changes in the financial position or operating results of IVS Bulk after 30 April 2021 will accrue to Grindrod Shipping.
IVS Bulk intends to redeem in full the $27.3m preferred share capital held by the company and Bain using available cash at IVS Bulk, the proceeds from an increase of one of IVS Bulk’s existing credit facilities by $23m and/or available cash on Grindrod Shipping’s balance sheet.
The shipowner, which is listed on the Nasdaq exchange in the US, said it will receive $18.2m from the redemption and Bain will gain $9.1m.
Grindrod Shipping chief executive Martyn Wade said the transaction represents a “critical step in the growth and development of Grindrod Shipping at a time of very strong freight rates in the dry bulk industry”.
In February last year, Grindrod Shipping agreed a $44.1m deal to acquire a nearly 33.3% stake in IVS Bulk in a move that took its holding in the venture to 66.8%.
Grindrod Shipping operates a fleet of owned and long-term and short-term chartered-in bulkers, with a core fleet of 31 vessels consisting of 15 handysizes and 16 supramax/ultramax units.
