Taylor Maritime Investments, a dry bulk-shipping investment company, has revealed that its subsidiary undertakings, Grindrod Shipping Holdings and Grindrod Shipping Pte. Ltd, have agreed to acquire its commercial and technical vessel managers for approximately $11.75 million.
Integration of Management to Drive Synergies
In this significant move, the Grindrod grouping will purchase the entire issued share capital of Taylor Maritime Management (TMM) from Taylor Maritime Group, as well as Tamar Ship Management from Taylor Maritime Group and Temeraire Holding. TMM and Tamar act as the commercial and technical managers for the majority of vessels in Taylor Maritime Investments’ portfolio, excluding Grindrod group vessels.
This integration and alignment of management for Taylor Maritime Investments (TMI) and Grindrod fleets is poised to unlock further synergies, boosting operational efficiency and financial performance.
Transaction Overview
The London-listed company detailed the transaction structure, which includes a cash payment of $2 million upon completion, along with an issuance of shares valued at around $1.95 million. Furthermore, consideration shares worth up to approximately $3.9 million will be issued on the first anniversary of completion, followed by an additional $3.9 million worth of consideration shares on the second anniversary.
It’s important to note that the maximum value of this transaction will not exceed $13.5 million.
Strategic Benefits
Chairman Henry Strutt expressed the TMI board’s support for unified management across both the TMI and Grindrod fleets. This strategic decision was driven by its numerous advantages, including improved operational efficiency and financial outcomes. The aim is to leverage this unified management approach to optimize the overall performance of both fleets.
At 0918 GMT, shares remained steady at 74.50 pence.