Grindrod Shipping Approves $49.6M Capital Reduction, 95.7% Shareholder Support

  • Grindrod Shipping held an EGM on June 20, 2024, to discuss a selective capital reduction.
  • The SCR proposal passed with 95.7% shareholder approval, reducing share capital by $49.6 million.
  • The reduction involves canceling 3,479,225 shares, returning $14.25 per share to participating shareholders.

Grindrod Shipping Holdings Ltd. (NASDAQ: GRIN, JSE: GSH) announced results from its extraordinary general meeting (EGM). Shareholders approved the selective capital reduction (SCR) proposal.

Overview of the EGM

Meeting Details

The EGM took place on June 20, 2024, at 18:00 Singapore Standard Time. Shareholders attended virtually or by proxy. The meeting aimed to discuss the selective capital reduction of the company under Section 78G of the Companies Act 1967 of Singapore.

Shareholder Participation

As of the EGM record date, May 10, 2024, the company had 19,685,590 ordinary shares issued. At the EGM, 1,504,373 shares, or approximately 46.067% of shares entitled to vote, were present. Good Falkirk (MI) Limited and its concert parties, holding 16,419,947 shares, abstained from voting.

Details of the Selective Capital Reduction Proposal

Proposal Breakdown

The proposal sought approval to reduce the company’s issued share capital from $290,193,001 to $240,614,044. This would involve canceling 3,479,225 shares held by participating shareholders.

Financial Implications

The reduction amount of $49,578,956 will be returned to participating shareholders in cash. Each canceled share would receive $14.25.

Table 1: Selective Capital Reduction Details

DescriptionAmount
Original Share Capital$290,193,001
Reduced Share Capital$240,614,044
Shares Canceled3,479,225
Cash Returned per Canceled Share$14.25
Total Reduction Amount$49,578,956

EGM Voting Results

Voting Outcome

The SCR proposal received approval from the majority of voting shareholders. Details of the votes are as follows:

Table 2: Voting Results

Vote TypeNumber of SharesPercentage
For1,434,60595.714%
Against64,2414.286%
Abstentions5,5270.367%

Abstentions counted towards the quorum but did not affect the vote percentages for or against the proposal.

High Court Approval

The company will seek approval from the High Court of the Republic of Singapore to finalize the selective capital reduction.


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