Grindrod Update

June 19, 2024
Anthony Clark
Anthony Clark

Last week Rembrandt decided to unbundle its 25% stake in Grindord. Updated opinion & target value

Last week after being a majority 25% shareholder since 2011, investment holding company Rembrandt (Remgro) surprised the market and announced it would suddenly unbundle its stake in the logistics and ports business

The stake is value at R1,6bn and will see Remgro shareholders receive 30.708 Grindrod shares for every 100 Remgro shares

Why Remgro decided to sell is puzzling but in their annual results they stated it was the time to exit and the most tax efficient method. It will all happen quickly with shares in account around October 17th

This initially caused some unsettled share price action in Grindrod as the market weighed 174 million shares hitting investors. But as I write Grindrod is at 930-cents but I'd be watchful of the coming weeks as the shares are unbundled

There is an opportunity here as I write in this updated Grindrod note. I've been bullish on Grindrod since November 2020 at 370 cents and have recommended the stock on multiple occasions. My 750-cent and 1150-cent targets were both met.

Read my note as enclosed and decide for yourself. As always do your own research as this is just an opinion



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