Grindrod Shipping to seek shareholder OK for selective capital reduction (NASDAQ:GRIN)
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Grindrod Shipping (NASDAQ:GRIN) +30.9% post-market Thursday after disclosing plans for a selective capital reduction, offering participating shareholders $14.25/share to cancel ~17.67% of its issued shares; shares closed at $10.54 in regular trading.
Grindrod (GRIN) said the selective capital reduction will involve lowering its issued share capital from ~$290M comprised of 19,685,590 shares to ~$240M comprised of 16,206,365 shares.
The move, funded by the company’s existing cash reserves, aims to provide “an immediate and certain exit opportunity for shareholders at an attractive premium to the company’s share price.”
The proposal is subject to approval at an upcoming extraordinary general meeting and various regulatory conditions.
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