Grindrod Limited, the JSE-listed freight logistics company, has announced that its subsidiary Grindrod Trading Holdings (Pty) Ltd has acquired a 20 per cent share in Senwes Limited for R444mn (US$44.75mn) at a price of R12.29 (US$1.23) per share
Senwes, established in 1909, is one of the leading agribusiness companies in South Africa with retail and grain operations throughout the central region of South Africa, as well as grain trading offices in Malawi, Zambia and Mozambique.
The company’s main business is the provision of input products for agricultural production, market access for grain produce, as well as financial, technical, insurance and logistical services to grain producers.
Grindrod, through its four divisions of freight, trading, shipping and financial services, specialises in the trading, handling and transportation of bulk commodities – which includes agricultural products – by road, rail and sea.
Wayne Hartmann, CEO of Grindrod Trading, said, "Grindrod continues to execute its strategy to provide a complete service offering that includes origination, processing, hedging, distribution, supply chain management, risk management and financing activities for its customers in the agri-processing industry – a complete value chain solution.
"We are extremely fortunate to have been able to procure Grindrod as a strategic shareholder and we foresee that given both parties’ strategies, major opportunities within each of our sectors could be pursued," added Francois Strydom, managing director of Senwes.
Grindrod will nominate one director to the board of Senwes and through its participation it is foreseen that various future synergies between the two parties may be unlocked.
