Grinrod set to acquire 20% of Senwes

Grinrod is set to acquire 20% stake in agricultural commodity trader Senwes in a deal charcaterised as full of synergistic opportunities.

The two companies, Grinrod and Senwes issued a statement yesterday saying they have reached an agreement for this deal.

“This agreement is aligned with the growth strategy of Senwes and the diversification of Senwes’s geographic and commodity risks. As future strategic partners, multiple opportunities and synergies in the agricultural, commodity and logistics sectors will be pursued”.

Grindrod, a JSE listed company, provides freight transport, trading, shipping and financial services. This said the company brings about operating and marketing synergies locally and internationally.  “In pursuing the strategy of becoming a fully integrated freight and logistics service provider, Grindrod invests in assets and opportunities across the four operating divisions, with specific focus on dry bulk and bulk liquid commodities, containerised cargo and vehicles”.

The announcement said this strategy correlates with that of Senwes in the bulk soft commodity market and logistics in terms of the handling, marketing and importing and exporting of grain commodities globally, locally and into SADC.

The statement said Grindrod acquired a portion of the shares from Senwes’s remaining shareholder in the BEE consortium, namely Treacle. Senwesbel in turn sold the other portion to Grindrod. Grindrod is now a 20% shareholder in Senwes at an average purchase consideration of R12.29 per share. Senwes also indicated that the other Treacle shares had been acquired as treasury shares and that the Senwes Share Repurchase Programme, which commenced in February 2013, would be terminated since the required number of shares had been acquired.

news@ujuh.co.za

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