Grindrod, a key player in port, terminals, and logistics, has agreed to sell various investments to African Bank for R500 million. This move is part of Grindrod’s strategy to divest from non-core assets and enhance its financial stability for future freight development projects. The sale includes mortgage bonds from its KwaZulu-Natal properties, a 19% stake in Trevally Group, and loans linked to the Royal Shaka Property Group.
Pending regulatory approval, the funds will help restructure Grindrod’s balance sheet and support expansion plans in freight services. The company’s non-core assets primarily consist of its marine fuel trading business and a private equity portfolio.
Grindrod has been making strides at the Maputo port, where it operates three terminals, benefitting from a sluggish performance at South African ports. Recent expansions, including acquiring a 35% stake in the Matola terminal, aim to significantly boost capacity.
As African Bank prepares for its public listing in 2025, this acquisition aligns with its growth strategy following previous investments, including Grindrod Bank and other financial units. Despite a slight drop in Grindrod’s share price, it has seen a 31% increase this year, reflecting ongoing investor confidence.