Grindrod finalises selective capital reduction

19 July 2024

Taylor Maritime Investments Limited (the "Company" or "TMI")

Grindrod Shipping Holdings Ltd announces declaration and finalisation announcement in respect of the Selective Capital Reduction and the cash distribution

Taylor Maritime Investments Limited, the specialist dry bulk shipping investment company, is pleased to disclose that its subsidiary, Grindrod Shipping Holdings Ltd. ("Grindrod Shipping"), today announced the following updates regarding the Selective Capital Reduction:

Following the receipt of the High Court of the Republic of Singapore's approval on 16 July 2024, the Selective Capital Reduction will take effect upon the lodgement of the Court Order with the Singapore Registrar ("ACRA Lodgements") which is expected to take place on 16 August 2024 (the Effective Date"). Other than the ACRA Lodgements there are no other outstanding conditions to the Selective Capital Reduction becoming effective.

As a result, all of the ordinary shares of Grindrod Shipping held by shareholders, comprising 3,479,225 shares, other than shares held by its subsidiary, Good Falkirk (MI) Limited ("GF"), will be cancelled and Grindrod Shipping will become a wholly owned subsidiary of the Company through GF (which will own 100% of the shares in Grindrod Shipping - up from 82.33%).

Trading of Grindrod Shipping's shares on the Nasdaq will be suspended with effect on and from 15 August 2024 and trading of Grindrod Shipping's shares on the JSE will be suspended with effect on and from 16 August 2024.

The Record Date for the cash distribution is 20 August 2024 with the payment date expected to be 21 August 2024.

Further details can be found in the announcement released today by Grindrod Shipping.

Notes to Editors

About the Company 

Taylor Maritime Investments Limited is an internally managed investment company listed on the Premium Segment of the Official List, its shares trading on the Main Market of the London Stock Exchange since May 2021.  The Company specializes in the acquisition and chartering of vessels in the Handysize and Supra/Ultramax bulk carrier segments of the global shipping sector.  The Company invests in a diversified portfolio of vessels which are primarily second-hand.  TMI's fleet portfolio currently numbers 18 vessels in the geared dry bulk segment.  The ships are employed utilising a variety of employment/charter strategies.

On 20 December 2022, the Company announced it acquired a controlling majority interest in Grindrod Shipping Holdings Ltd ("Grindrod") (NASDAQ:GRIN, JSE:GSH), a Singapore incorporated, dual listed company on NASDAQ and the Johannesburg Stock Exchange.  Grindrod has an owned fleet of 17 dry bulk vessels complementary to the Company's fleet.  They are Japanese built, including ten Handysize vessels and seven Supra/Ultramax vessels.  Grindrod has seven vessels in its chartered in fleet with purchase options on three.

The combined TMI and Grindrod fleet numbers 38 vessels (including chartered in vessels with purchase options and including vessels held for sale).

The Company's target dividend policy is 8 cents p.a. paid on a quarterly basis, with a targeted total NAV return of 10-12% per annum over the medium to long-term.

The Company has the benefit of an experienced Executive Team led by Edward Buttery and who previously worked closely together at Taylor Maritime.  Taylor Maritime was established in 2014 as a privately owned ship-owning and management business with a seasoned team including the founders of dry bulk shipping company Pacific Basin Shipping (listed in Hong Kong 2343.HK) and gas shipping company BW Epic Kosan (formerly Epic Shipping).  The commercial and technical management arms of Taylor Maritime were acquired by Grindrod in October 2023.    

For more information, please visit www.taylormaritimeinvestments.com.

About Geared Vessels

Geared vessels are characterised by their own loading equipment. The Handysize and Supra/Ultramax market segments are particularly attractive, given the flexibility, versatility and port accessibility of these vessels which carry necessity goods - principally food and products related to infrastructure building - ensuring broad diversification of fleet activity and stability of earnings through the cycle.

IMPORTANT NOTICE

The information in this announcement may include forward-looking statements, which are based on the current expectations and projections about future events and in certain cases can be identified by the use of terms such as "may", "will", "should", "expect", "anticipate", "project", "estimate", "intend", "continue", "target", "believe" (or the negatives thereon) or other variations thereon or comparable terminology. These forward-looking statements are subject to risks, uncertainties and assumptions about the Company, including, among other things, the development of its business, trends in its operating industry, and future capital expenditures and acquisitions. In light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur.

References to target dividend yields and returns are targets only and not profit forecasts and there can be no assurance that these will be achieved.

LEI: 213800FELXGYTYJBBG50