| Tue 27 Mar 2012, 17:46 | | GND/GNDP - Grindrod - Press announcement - Grindrod and Vitol to further |
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GND GNDP
GND
GND/GNDP - Grindrod - Press announcement - Grindrod and Vitol to further
strengthen their strategic alliance
GRINDROD LIMITED
(Registration number: 1966/0009846/06)
Share code: GND & GNDP
ISIN: ZAE000072328 & ZAE000071106
("Grindrod" or "the Company")
GRINDROD AND VITOL TO FURTHER STRENGTHEN THEIR STRATEGIC ALLIANCE
JSE listed Grindrod Limited, the integrated logistics and shipping
business, has agreed to sell a 50% interest in Cockett Marine Oil (Cockett)
to Vitol, the largest independent energy trading business in the world.
The consideration amount is undisclosed and the transaction is subject to
competition commission approval.
Cockett is one of the leading value added resellers and physical marine
fuel suppliers in the world with a network of offices across Europe,
Americas and Far East providing a global service to shipping clients.
Cockett is developing a network of physical supply operations in strategic
locations delivering approximately five million tonnes of marine fuels
annually at competitive prices whilst guaranteeing quality of service and
product.
"Vitol is the ideal partner to support Cockett`s global growth strategy",
said Karl Beeson, Managing Director Cockett Marine Oil.
Further to this transaction, the companies have formed a joint venture
company called Leopard Tankers and will build four medium range product
tankers in Korea which will deliver in the first half of 2013. The ships
will be commercially operated within the Vitol Group.
Mr Martyn Wade, CEO of Grindrod Shipping said: "This investment represents
the ideal partnership of an experienced ship owner with a first class
commercial operator having access to a substantial cargo base. The ships
represent cutting edge design and incorporate the latest engine
technologies allowing significant savings in fuel consumption and running
costs. We believe this partnership is an exciting platform for future
expansion with the ability to rapidly scale up the investment model as
opportunities develop."
Ian Taylor, President and CEO of the Vitol Group, said: "We are pleased to
have signed this agreement with Grindrod. In January we acquired an
interest in their Maputo coal terminal and created a coal trading joint
venture. Now we have broadened our relationship with the purchase of 50% of
Cockett, one of the leading value added resellers of marine fuels, and our
joint agreement to build 4 new product tankers. These are all important
additions to the Vitol Group and sources of future growth"
This announcement follows the finalisation of the agreement effective 1
January 2012 in which Vitol will acquire from Grindrod a 35% interest in
the company which owns the Maputo coal terminal concession. In addition
Vitol and Grindrod announced their intention to combine their respective
sub Saharan coal trading businesses (65% Vitol / 35% Grindrod).
ABOUT GRINDROD
Grindrod, first established in 1910, has evolved into an integrated
logistics and shipping service supplier focused on the movement of dry bulk
and liquid bulk commodities, containerised cargo and vehicles by road, rail
and sea. Listed in South Africa, Grindrod is a global business with
representation in 25 countries, employing about 5000 people throughout its
four divisions - Freight Services, Shipping, Trading and Financial
Services.
Grindrod Freight Services focuses on terminals, intermodal solutions, rail,
port operations, road transportation and all facets of traditional
logistics, including international freight forwarding, contract logistics
and specialized industry-solutions.
Grindrod Shipping` modern fleet of dry cargo and product and chemical
tankers trade globally under the banners of Singapore-headquartered Island
View Shipping and Unicorn Shipping.
Grindrod`s Trading division trades worldwide in dry and liquid bulk
commodities, including agricultural products, industrial raw materials,
marine fuels and lubricants.
Grindrod Bank was established in 1994 and has matured into a competitive
merchant bank, offering tailored financial solutions to corporate and
private clients.
Further details on Grindrod are available at www.grindrod.co.za
ABOUT VITOL
The Vitol Group was founded in 1966 in Rotterdam, the Netherlands. Since
then the company has grown significantly to become a major participant in
world energy markets and is now one of the world`s largest independent
energy traders. Its trading portfolio includes crude oil, oil products,
bunker fuel, LPG, LNG, natural gas, coal, power, metals and carbon
emissions. Vitol trades with all the major national oil companies, the
integrated oil majors and the independent refiners and traders.
Through its trading business, Vitol has established itself in shipping as
one of the world`s largest charterers of crude oil and oil product tankers.
Globally Vitol trades over 5.5 million barrels of crude oil and products
per day and its 2011 revenues were $297 billion.
In addition to its trading business and its 50% share in the storage and
terminals business, VTTI, with 11 terminals on five continents, Vitol has
an exploration and production business which includes interests in Ghana,
Cameroon, Kazakhstan, Russia and Azerbaijan. It also currently owns and
operates over 100 000 barrels per day in refining assets and a thermal coal
mine in British Columbia, Canada.
Further details on the Vitol Group are available at www.vitol.com
Durban
27 March 2012
Sponsor
Grindrod Bank Limited
Date: 27/03/2012 17:46:02 Produced by the JSE SENS Department.
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