The share has weakened despite the company offering promising potential for growth, joint ventures and consortium agreements
Previous articles, always seemingly written in March or November, show that our fi
Why Remgro unbundled is a mystery. Many believed it was long-term holding and that Remgro was the natural capital partner for Grindrod given the dire state of domestic rail and port infrastructure and the desire by government to involve private sector participation. However, Remgro has partnered with Mediterranean Shipping Co.
IM is aware that several external approaches have been made for Grindrod, with the board apparently having set up a process to handle and adjudicate the numerous enquiries. This was one of IM’s tenets in its original recommendation — corporate action .Recent results to December 2022 were commendable. Headline earnings rose 40% to 128.8c a share, with a total dividend for the period giving shareholders a total of 95.3c a share. NAV for the period was R12.11 a share.
As IM writes, Grindrod is trading at just over 900c, a decline of 8% in the year to date but 14% from when results were recently released. In the reporting period Grindrod handled record drybulk and port volumes at its operations — highlighting that efficient operators benefited as Transnet languished.
In an agreement between Transnet Freight Rail and Portos e Caminhos de Ferro de Moçambique, the state-owned company that operates the railway, a major agreement was signed that would allow seamless cross-border exports to the port of Maputo.This will be a win for Grindrod. TFR plans to nearly double the number of trains on the northwest corridor for export commodities to the port of Maputo. Chrome ore trains will increase from 12 a week to 21, and magnetite trains from 17 to 28.
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