Grindrod Shipping announces entry into sale and purchase pacts

Grindrod Shipping Holdings announced the entry by Grindrod Shipping , a wholly owned subsidiary of Grindrod Shipping, as buyer, and Grindrod Shipping, as parent, into two sale and purchase agreements to acquire the entire issued share capital of Taylor Maritime Management Limited and Tamar Ship Management Limited from, in the case of Taylor Maritime Management Limited, Taylor Maritime Group Limited and, in the case of Tamar Ship Management Limited, Taylor Maritime Group Limited and Temeraire Holding Limited . Following the Acquisition, the Companies will become wholly owned subsidiaries of Grindrod Shipping. The Acquisition is subject to certain closing conditions and closing is expected to occur before mid-October. Under the terms of the transaction, Grindrod Shipping and Island View Ship Management have agreed to acquire all of the shares of the Companies for a total consideration of approximately $11.75M via a completion cash amount of $2M: allotment and issuance of completion consideration shares of approximately up to $1.95M an issuance of consideration shares at the first anniversary of the completion date of up to approximately US$3.9M The Sale and Purchase Agreements contain customary warranties and covenants of the parties and, in connection with the Acquisition, each Seller will be subject to limited non-compete and non-solicitation covenants with regard to Grindrod Shipping and its subsidiaries for two years from the completion date. The closing of the Acquisition, expected to occur before mid-October 2023 is subject to closing conditions, including, among other things, the repayment of debts owed by the Companies and their subsidiaries to the Sellers and by the Sellers to the Companies and their subsidiaries.