Integrated shipping and logistics group Grindrod and black-owned investment firm Brimstone Investment Corporation have successfully concluded a black economic-empowerment (BEE) transaction, which has resulted in a Brimstone-led consortium acquiring an 8.4% interest in Grindrod for R1.6-billion.
Brimstone holds a 59% share in the consortium, while Calulo Investments holds 20%, Solethu Investments 13%, Safika Holdings 5% and the Adopt-A-School Foundation 3%.
Calulo, Adopt-A-School and Solethu previously held shares in Grindrod subsidiaries and had since restructured their shareholding through the consortium at listed company level.
Grindrod CEO Alan Olivier said on Wednesday that the investment, together with the R2.4-billion raised through the issue of 96-million new shares in an accelerated bookbuild earlier this year, would fund planned capital infrastructure projects.
“We’ve been in business with Calulo and Solethu for some time and value their contribution to our business. We are very pleased to have Brimstone as the leading shareholder in this consortium and look forward to their valuable input,” he commented.
Brimstone CEO Mustaq Brey added that the group continuously sought investment opportunities that would create long-term value for its shareholders.
“The BEE transaction allows us to establish infrastructure as a new focus area and is something we’ve been investigating for some time. With its diversified suite of well-placed quality assets, Grindrod represents a long-term investment in African infrastructure development, which is an attractive and growing asset class.
“Grindrod shares are currently tightly held and it’s difficult to acquire a substantial shareholding in the company. This deal enables us to acquire a meaningful stake on a leveraged basis and we look forward to contributing to the company’s ongoing success,” he said.