FX.co ★ Grindrod Shipping Surges In Pre-market On Capital Reduction Plan

Grindrod Shipping Holdings Ltd. (GRIN) shares are experiencing a surge of more than 26 percent in their pre-market value, seeing them rise to $13.33. This comes in the wake of the company's announcement of plans to engage its shareholders in approving a selective capital reduction move.

In October 2022, Good Falkirk (MI) Limited, a branch of Taylor Maritime Investments Limited, made a voluntary conditional cash offer (VGO) for Grindrod. In response, Grindrod tendered approximately 83.23% of its shares into the VGO.

Currently, Grindrod is suggesting a capital reduction that would result in the cancellation of all shares apart from those held by GF. Under this plan, shareholders participating in the VGO would receive $14.25 per share, which will subsequently be removed from circulation.

As of Thursday, the closing price of Grindrod shares was $10.54, marking an increase of 0.86 percent. Over the past year, the shares have traded between $6.80 and $14.90.