Huh! They still exist?

Saw a news item that indicated Grindrod Shipping (GRIN) was still trading. That was a surprise to me since I thought the secretive Taylor Maritime Investments (TMI) had completed a deal in 2022 to buy GRIN lock, stock and barrel? There was a quirky set-up where TMI would acquire an existing shareholder’s share for $21, and toss in a $5 dividend for a total of $26. I think I exited my position @ $24.5 - 25.5 with a very nice gain.

Yes, there’s a reference to the TMI offer. I guess TMI never got the requisite 90% that would have allowed them to force the minority to surrender their shares.

Still, it gets interesting.
Although TMI own a majority of GRIN, there are ongoing deals between the two entities. Among other things, GRIN has

  • purchased two vessels from parent entity TMI
  • will purchase the ship management business from TMI for $11.75M (via cash and shares)
    Plus,
  • acquired a charter-in vessel
  • sold a handful of vessels in the first half of 2023
  • will pay a dividend to shareholders in two tranches (Oct & Dec 2023)

In a word - Fascinating.
But either

  • taking the TMI offer (@$21 + $5 div)
    or
  • trading GRIN shares above $24/sh in late 2022
    would have provided a great return.

GRIN shares started 2023 @ $18.71, and kept sliding lower as the year progressed. From May 19, 2023 - Oct 5th, 2019 shares traded in the single digits. Oct 6th 2023 finally breached $10/sh.

Is the TMI plan still to get GRIN folded into TMI?

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More recent developments on GRIN here.

Q3 2023 has been a less upbeat quarter for dry bulk shipping. However,
in the near term, GRIN share price could be propped up by that distribution. In particular, the first payout, that could be viewed as an early Q3 payout.

Earlier I mention TMI being secretive. The comment was based on their website previously being restricted to users from certain countries (including US last year). It appears that has changed.

The TMI website-
https://taylormaritimeinvestments.com/

Per 06/30/23, TMI had 22 vessels and GRIN had 25 vessels. The SA link suggested GRIN has a slightly larger fleet (could be subsequent charter-in vessels). But, the sale of the vessel management business now does make a little bit more sense. Just a way of extracting cash from a subsidiary. Vessel valuation on both TMI & GRIN fleets seems slightly aggressive.