GNDE - Grindrod Limited - Grindrod"s Acquisiton Of 50% Of

16/05/2005 12:32:16

Grindrod Limited - Grindrod's Acquisiton Of 50% Of Sheltam Rail
Grindrod Limited
(Registration number: 1966/0009846/06)
Share code: GND ISIN: ZAE000052247
Grindrod Limited today announced the acquisition of a 50% share of Sheltam
Locomotive & Rail Services. Sheltam is a Port Elizabeth based owner and
operator of a substantial fleet of locomotives. In addition it has a marine
division servicing offshore marine power plants and an air charter business
servicing South Africa and adjacent countries.
Grindrod MD Ivan Clark said 'We are extremely pleased with the acquisition which
follows our stated strategy of investing in the South African logistics
industry. The strong shipping markets continue to generate good cash flows
which we need to invest carefully in core businesses.'
The current owner and managing director of Sheltam, Roy Puffett stated 'This is
extremely exciting for Sheltam and will take the company to the next level of
growth. There are substantial synergies in cross marketing opportunities
between Grindrod and Sheltam which can be capitalized upon. In addition a
strong partner like Grindrod would assist Sheltam in maintaining its position of
being the number one private rail operator in Southern Africa.'
Grindrod's Landfreight Director, Laurence Stuart-Hill said 'the acquisition of a
50% stake in Sheltam not only provided Grindrod with a good investment
opportunity but also a sound platform to progress any rail privatization and
concessioning opportunities in Southern Africa. The business of rail went hand
in hand with Grindrod's strategy of owning the complete supply chain.' Stuart-
Hill went on to add 'our vision is to offer to customers an integrated chain
utilizing owned service companies'.
This announcement follows Grindrod's recent announcement of spending up to R1
billion on expanding its landfreight businesses. The acquisition of Sheltam
follows closely on the announcements of the acquisition of Boltt Removals, the
takeover of facilities from Uniroute Logistics and the acquisition of terminal
operator, African Portland Industrial Holdings.
Grindrod's acquisition follows Spoornet's recent announcements that they will be
creating a framework to allow private operators to participate in South African
rail services.
The purchase price was undisclosed but indications by Grindrod management are
that this is the largest acquisition in Grindrod's landfreight expansion
programme to date.
Contact Details
I A J Clark
Managing Director - Grindrod Limited
082-891 3587
031-304 1451
L R Stuart-Hill
Director - Grindrod Limited
083-300 0820
031-304 1451
R Puffett
083-626 1919
041-581 4400
Date: 16/05/2005 12:29:04 PM
Produced by the JSE SENS Department

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