GNDE - GND/GNDP - Grindrod Limited - Grindrod announces a R2 billion capital raising

20/09/2011 07:06:01

GND/GNDP - Grindrod Limited - Grindrod announces a R2 billion capital raising
supported by Remgro
Grindrod Limited
(Incorporated in the Republic of South Africa)
(Registration number 1966/009846/06)
Ordinary share code: GND ISIN: ZAE000072328
Preference share code: GNDP ISIN ZAE000071106
Grindrod and Remgro issued a joint announcement today regarding a proposed R2
billion capital injection into Grindrod to be implemented by way of a specific
issue of new Grindrod ordinary shares for cash.
In terms of the agreement between Grindrod and Remgro, Remgro will subscribe for
133 333 334 new Grindrod ordinary shares at a subscription price of R15.00 per
share, an 8.8% premium to the unaffected 30 day VWAP. The new Grindrod ordinary
shares represent approximately 22% of the enlarged ordinary share capital of
Remgro will make an offer to Grindrod's existing shareholders allowing them to
participate in the capital raising. Grindrod shareholders will be offered a
non-renounceable right to subscribe for 28.6657 new Grindrod ordinary shares
in Remgro's stead for every 100 Grindrod ordinary shares held. To the extent
that qualifying Grindrod shareholders accept the Remgro offer, the number of
new Grindrod ordinary shares to be allotted and issued to Remgro will reduce
on a share-for-share basis with any resultant fractions of ordinary shares
being rounded up or down to the nearest whole number.
The transaction remains subject to the fulfilment or waiver of a number of
conditions precedent, including approval by a 75% majority vote of Grindrod
shareholders in general meeting.
The transaction is in line with Grindrod's communicated strategy to further
diversify its portfolio of businesses and transform into an integrated logistics
service provider. The group's ability to offer full end-to-end supply chain
services is a key competitive advantage.
In pursuit of this strategy, Grindrod is seeking to accelerate the group's
pipeline of strategic capital projects in Southern Africa. The transformational
capital expenditure programme, which will require in excess of R10 billion
over the next five years, will result in substantial investment in Grindrod's
strategically positioned ports and terminals capacity, in particular phase
4 of the Maputo Coal Terminal.
Commenting on the proposed transaction, CEO Alan Olivier said "Grindrod's
strategically located assets in Southern Africa positions Grindrod for
exciting growth. The transaction will support our growth plans and further
reinforces Grindrod's strong financial position. Importantly, we will achieve
further flexibility to respond to new opportunities as and when they arise,"
"We are delighted that Remgro is supporting the transaction, which we see as
a strong vote of confidence in Grindrod and our stated strategy. The weight
of Remgro's strategic insight and financial resources is extremely positive
for Grindrod, as we contemplate the next phase of the group's development.
The Remgro offer also affords our shareholders the opportunity to participate
in the capital raising on the same terms." concluded Olivier.
Media Enquiries
For all media enquiries, please contact: Alison Briggs
Group Marketing Manager, Grindrod
+27 83 419 2970
Email: [email protected]
Conference Call/Webcast Details
Grindrod's management team invites you to dial in to a conference call at
11:00 (South African time) on Tuesday, 20 September 2011. Access to an
internet webcast will also be available. The details for the link to the
webcast and the dial in details for the conference call are set out below:
Audio cast:
Live Call Access Numbers
Country Access Number
South Africa - Johannesburg 011 535 3600
UK (Toll-Free) 0 800 917 7042

South Africa - Johannesburg Alternate 010 201 6616
South Africa - Cape Town 021 819 0900
South Africa - Durban 031 812 7600
South Africa (Toll-Free) 0 800 200 648
Other Countries (Intl Toll) +27 11 535 3600
USA (Toll-Free) 1 866 752 6302 - * 0 for Operator
Playback Access Numbers Playback
Code: 18711#
Country Access Number
South Africa (Telkom) 011 305 2030
USA and Canada (Toll) +1 412 317 0088
Other Countries (Intl Toll) +27 11 305 2030
UK (Toll-Free) 0 808 234 6771
20 September 2011
Grindrod Bank
Date: 20/09/2011 07:06:01 Produced by the JSE SENS Department.
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