Grindrod Shipping likely to delist after buyback, says Alliance Global

Alliance Global Partners says Grindrod Shipping’s selective share capital reduction is effectively a buyout of its minority shareholders. The selective share capital reduction of $49.6M will effectively cancel 3.5M shares not held by the majority shareholder, the analyst tells investors in a research note. The firm says public shareholders will be effectively eliminated and TMI will own 100% of GRIN shares. As a result, it expects TMI will seek to delist from Nasdaq and other exchanges.