EMEA News
South African Bunkering, Logistics Firm Restructuring
South African logistics, shipping and services company Grindrod says it has reached a restructuring deal with investors to acquire their interests in several Grindrod subsidiaries, including Unicorn Calulo Bunker Services Proprietary Ltd., for a total of R560 million ($53 million).
The deal, with black economic empowerment (BEE) partners Calulo Investments Proprietary Ltd. (Calulo) and Solethu Investments Proprietary Ltd. (Solethu), will improve alignment between Grindrod's subsidiaries and make sure the businesses are appropriately capitalised, the company said.
"There are attractive inherent growth prospects for the businesses and the Acquisition represents an opportunity for Grindrod to acquire 100% of the earnings at fair value," the company said.
Grindrod has also reached an agreement with Brimstone Investment Corp. Ltd. (Brimstone), Calulo, Solethu, and Calulo Newco Proprietary Ltd (Calulo Newco) for a new consortium special purpose vessel that will invest R1.6 billion ($150 million) in Grindrod.
South African news site Independent Online reports that the deal represents Brimstone's entry into the infrastructure sector while helping Grindrod to grow.
