GRINDROD WANTS TO RAISE ITS STAKE IN IVS

GRINDROD Shipping Holdings, the global dry bulk and product tanker shipping group, has extended its Island View Shipping IVS Bulk joint venture for another month while negotiations to increase Grindrod’s stake in IVS continue. The termination date of the joint venture had been extended from November 30, 2019, to December 31, as talks were under way for Grindrod to acquire an additional 33.25 percent from one of the partners, with the other partner retaining its 33.25 percent stake, Grindrod said yesterday. Negotiations were also under way with lenders to refinance all of the existing debt of IVS Bulk, and provide Grindrod with sufficient capital to acquire the additional 33.25 percent stake. The dry bulk business, which operates under the IVS brand name, includes a fleet of 17 handysize dry bulk carriers and 15 supramax/ultramax dry bulk carriers on the water, with two chartered-in ultramax dry bulk carriers under construction in Japan due to be delivered in 2020. “We can provide no assurance that we will complete the acquisition until such time that agreements have been finalised and the financing has been obtained.” The financing of the new vessel IVS Magpie had closed on November 20, 2019. The financing generated about $5.4 million (R79m) of cash after settling the debt associated with the vessel. Grindrod Shipping’s share price declined 1.97 percent on the JSE yesterday to close at R95.09. |