GNDE - Grindrod Limited - Press Release Announcement

14/03/2006 15:19:01

Grindrod Limited - Press Release Announcement
(Registration number: 1966/0009846/06)
Share code: GND & GNDP
ISIN: ZAE000072328 & ZAE000071106
Grindrod today announced the acquisition of the remaining 50% of Auto
Carrier Transport (Pty) Ltd ("Auto Carriers"). Auto Carriers is the largest
transporter of vehicular equipment in South Africa and supplies vehicle
distribution and logistical services to a substantial number of South
African car manufacturers and other importers. Auto Carriers currently
service approximately 35% of the South African market.
Grindrod director, Laurence Stuart-Hill noted "Auto Carriers has been one of
our long standing entrepreneurial partnerships. The opportunity to acquire
the remaining 50% from our partner, David Taylor, provides a good
opportunity for expansion in this field. It fits into our strategy of
acquiring outside shareholders" interests in our various subsidiary
David Taylor went on to add "The partnership has enabled Auto Carriers to
add value to its clients and being wholly owned by Grindrod will remove any
further constraints there may be to satisfying clients" requirements for
their finished vehicle logistics".
Stuart-Hill said "Auto Carriers has invested heavily over the past 2 years
in both storage and vehicle carrying capacity to service the growing demand
for the movement of fully built up units in South Africa. We see continuing
investment in this area."
David Taylor will remain as managing director of Auto Carriers.
Grindrod also announced today the acquisition of the remaining 25% of
Grindrod Perishable Cargo Agents, the South African perishable airfreight
business. Grindrod owned 75% of this business with Mr Peter Krafft, the
managing director, owning the remaining 25%. This acquisition gives
Grindrod 100% ownership of Grindrod PCA. Grindrod PCA is the largest South
African airfreight forwarding agent, measure by turnover with airlines and
has held the number one IATA (International Air Transport Association)
position in excess of 25 years. Peter Krafft was previously the managing
director of Rohlig-Grindrod the clearing and forwarding business Grindrod
has, in partnership with the international forwarding agency of Rohlig.
Stuart-Hill added, "we have always said that in time Grindrod would acquire
the outside shareholders" interests in the various subsidiary companies.
The strategy of acquiring entrepreneurial businesses via partnership has
proven beneficial giving Grindrod access to the various market sectors
whilst maintaining entrepreneurial focus and expertise. These managing
directors / partners will be replaced in time by Grindrod management who
have gained valuable industry expertise during these partnerships."
The Auto Carriers transaction is subject to Competition Commission approval.
No price was given for the various transactions.
Contact Details
I A J Clark
CEO - Grindrod Limited
082-891 3587
031-304 1451
L R Stuart-Hill
Director - Grindrod Limited
083-300 0820
031-304 1451
D G Taylor
Managing Director - Auto Carriers
083-250 9468
021-426 1062
Date: 14/03/2006 03:19:03 PM Produced by the JSE SENS Department

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