Grindrod Shipping Holdings Ltd. (GRIN) (GSH) (“Grindrod Shipping” or “Company” or “it” or “we”), a global provider of maritime transportation services in the drybulk and product tanker sectors, provided an update relating to the planned acquisition of an additional 33.25% stake in its IVS Bulk joint venture (“IVS Bulk” or “JV”).
Grindrod Shipping is progressing negotiations to acquire all of the 33.25% ordinary and preference shares in IVS Bulk held by one of its two JV partners for approximately $44.2 million, thereby increasing our stake in the JV to 66.75%. In the event the transaction is implemented as anticipated, we will consolidate IVS Bulk’s financial results into our financial results going forward.
Term sheets have been executed with lenders and the parties are in the process of negotiating the financing and other transaction documentation. All of the planned new finance facilities and the agreement to acquire the additional 33.25% interest in IVS Bulk will be inter-conditional and in order to facilitate the closing of the acquisition and related financings, the termination date of the existing IVS Bulk JV has been extended until January 31, 2020. We can provide no assurance that we will complete the acquisition until such time that the agreements have been concluded and implemented.