Freight transferring company: Grindrod Transport Companies (GRIN 16.73%) had quite a memorable Monday at the inventory alternate. The Singapore-based logistics specialist saw its shares rise nearly 17% on the day on the back of an impending buyout.
Grindrod disclosed in a pair of regulatory documents that Taylor Maritime Investments had filed a non-binding indicative delivery to collect the company. It offers $26 a share for its purpose; in response, buyers offered nearly $24 for Grindrod’s US-listed shares. Grindrod stated that the offer was formally made on Thursday, August 25.
The two companies have agreed to grant Taylor Maritime a period of exclusivity to trade the deal. Grindrod did not specify how long this era could be.
Taylor Maritime is a U.Ok. listed shipper that owns and operates a fleet of dry bulk carriers. On its website, it says it aims to “create value for buyers by specializing in a market that is inherently robust because it is centered around a steady demand for necessary items.”
The British company is already a major shareholder in Grindrod, with a stake of more than 4.9 million shares in its peer. This includes an interest of approximately 26%.
Other than the 2 Grindrod files and an accompanying Taylor Maritime copy, neither firm has made any but formal statements on the matter. While enjoyment of Grindrod is certainly justified to some extent, buyers should remember that delivery is non-binding and, as a result, subject to change and even cancellation. Let the customer beware.
Eric Volkman has no place in any of the shares discussed. The Motley Idiot holds positions in and recommends Grindrod Transport Holdings Ltd. The Motley Idiot has a cover for disclosure.