Grindrod has acquired a further 35% in Terminal de Carvão da Matola Limitada (TCM whi operates a dry bulk terminal in Mozambique for R1.35 billion from Mauritiu-based Vitol.
The acquisition of the remaining interest it did not already control in TCM takes Grindrod’s total shareholding in the Maputo dry bulk terminal to 100%.
“In terms of the agreement, the purchaser is to purchase the remaining 35% of the share capital of TCM from the seller. Following the implementation of the acquisition and through the purchaser, Grindrod will hold 100% of the share capital of TCM,” Grindrod said yesterday.
The dry bulk terminal owned by TCM in Maputo has annual capacity to export in excess of 7 million tonnes of magnetite and coal.
TCM is operated under a sub-concession to the Maputo Port Development Company’s main port concession and has the capacity to receive cargo by rail and road as it has its own dedicated export berth which handles gearless panamax and baby cape vessels.
TCM’s long-term sub-concession was a strategic asset that enables Grindrod to provide cost-effective and efficient integrated logistics solutions for customers’ cargo flows.
Through TCM, Grindrod aims to “unlock its value creation across the Maputo corridor and meaningfully drive its pit-to-port solution” for exporters.
The transaction is based on an initial purchase consideration of $55 million and a deferred $22m to be paid in sixteen equal quarterly instalments of $1.3m.
BUSINESS REPORT