JSE-listed Grindrod has confirmed the planned separate listing of its shipping division on the Nasdaq, and a secondary listing on the JSE, for June.
Subject to approval by Grindrod shareholders at a meeting to be held on June 4, Grindrod Shipping will list in the Industrial-Transportation Services sector of the JSE on June 19.
The business will list on the Nasdaq on June 18.
Grindrod Shipping in March agreed to buy Grindrod’s interest in Grindrod Shipping South Africa and Grindrod Shipping Pte Ltd in exchange for compulsorily convertible notes valued at about $320.68-million.
Each of the convertible notes is expected to be converted into a consideration share at a price of $16.82, Grindrod Shipping said on Monday.
Grindrod Shipping owns, charters and operates a fleet of drybulk carriers and tankers.
The separation of the business from the Grindrod group is aimed at allowing shareholders to identify more clearly the different characteristics of the shipping business from other businesses in the group.
It will also enable the management of each business to focus solely on that business.
Apart from a separate listing for its shipping division, Grindrod’s restructuring efforts also include closing the rail assembly business and selling its rail construction business.
These businesses are now all listed as discontinued operations.
The remaining businesses comprise the Maputo port and terminals, logistics, marine fuels and agricultural logistics, all bundled under Freight Services, and financial services.