Tuesday, July 27, 2021
Grindrod Shipping (GRIN)
Another Positive Move to Acquire JV Interest
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.
Remaining IVS Bulk joint venture interest of 31.1% acquired for $46.3 million. We view this move as positive since it effectively expands the fleet by four (two Supras/Two Handys) and eliminates another joint venture interest. Pricing is based on May 13th appraisal and April 30th financials. Funding will be comprised of combo of IVS Bulk existing cash and a new credit line of $23 million to redeem IVS preferred and existing GRIN cash after IVS Bulk preferred redemption.
Dry bulk market thesis intact. Supply/demand fundamentals appear favorable and 1H2021 TCE rate performance has been better than expected. The order book and supply growth remain historically low due to rate volatility, regulatory uncertainty and declining capital availability, while demand should rebound on the back of global stimulus packages and solid secular minor bulk trends. CEO Martyn Wade …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*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.
