South Africa’s Grindrod to issue shares to fund projects at the port of Maputo, Mozambique

21 September 2011

Durban, South Africa, 21 Sept – Grindrod Ltd plans to sell new shares worth 2 billion rand (US$262 million) to Remgro Ltd to fund several projects including the expansion of the coal terminal at the port of Maputo, Mozambique the company said Tuesday.

In a statement issued on its website, Grindrod said that Remgro Ltd, a South African investment company, would pay 15 rand cents per share and take a 22 percent stake in the Durban-based company.

Current shareholders may also acquire new shares under similar conditions to Remgro Ltd, and Grindrod plans to spend 10 billion rand on expanding its port and terminal capacity, particularly at the port of Maputo.

In the statement Grindrod said that the capacity of the coal terminal at the port of Maputo had increased in February from 4 million to 6 million tons, and an economic feasibility study was underway to increase capacity to 20 million tons. (macauhub)