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Tuesday, February 11, 2020
Grindrod Shipping (GRIN)
Acquisition of IVS Bulk JV Interest Set to Close
Grindrod Shipping, originated in South Africa with roots dating back to 1910. The company is based in Singapore, with offices around the world including, London, Durban, Cape Town, Tokyo and Rotterdam. Its primary listing is on Nasdaq and secondary listing on the JSE. Grindrod Shipping owns and operates a diversified fleet of owned, long-term chartered and joint-venture dry-bulk and liquid-bulk vessels across the globe.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Acquisition of IVS Bulk minority interest should close shortly. The $44.1 million acquisition will consolidate the joint venture and enhance the dry bulk fleet profile. Secured debt of $127 million refinances existing JV debt and a GRIN sub will borrow ~$36 million to complete the acquisition.
Sale of small tanker also announced for $9 million. The sale increases liquidity by ~$4.5 million and enhances the fleet profile. Adjusting estimates to reflect the acquisition, asset sale and dry bulk market weakness. Our new 2020 EBITDA estimate drops to $59 million from $65 million. We expect to introduce a...
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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.