Grindrod to focus on remaining core businesses, says CEO Xolani Mbambo
Xolani explains that the proceeds from the sale of the Grindrod Shipping Holdings shares will be allocated to debt.
Grindrod has sold its 9.6 percent stake in Grindrod Shipping Holdings, the company from which it was founded. Grindrod will now focus on ports, terminals and logistics solution services for Africa’s exports and imports.
According to Grindrod CEO and 2020 CFO Awards nominee Xolani Mbambo, this is in line with the group’s communicated strategy to exit non-core assets. “We will be focusing on the remaining core businesses,” he says.
The shares were sold at $13.50 (about R201) per share, raising gross proceeds of $24.87 million (about R372 million).
The sale of the shares is expected to result in an improved capital allocation in the company and Xolani explains that the proceeds will be applied to the group’s debt.
Xolani confirms that the group will also be selling its Marine Fuels business and its private equity assets. “We will update the market as we progress,” he says.