Grindrod has announced its intention to exit its 50% stake in marine fuel trading business Cockett, the last material asset in the group’s noncore portfolio.
This marks the final disposal of Grindrod’s peripheral noncore assets, a key step in the effort to slim down its core activities within logistics and transport.
The company has been actively divesting of its noncore assets in recent years, including the disposal of Grindrod Bank in 2022 and the sale of North Coast property-backed loans to African Bank in March.
The latest move comes after Grindrod and energy group Vitol, the joint owners of Crocket, decided to proceed with an orderly wind down of Crockett.
“This difficult decision was reached after long consideration and in light of the noncore nature of Cockett’s business to both shareholders,” the groups said last week.
As part of the deal, Grindrod will receive $22m, or 61% of Cockett’s carrying value at end-December.
Grindrod and Vitol said Cockett was in a sound financial position and would continue to fulfil its existing contractual obligations but would not enter into any new business.
At 9.40am, Grindrod’s share price was up 2.64% at R12.45, having gained 4% since the start of the year.
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