Grindrod negotiating with “potential partner”

South Africa-based shipping firm Grindrod has entered into negotiations with a “potential strategic partner and provider of growth capital” for a R2-billion capital injection. It said the capital would be through the issue of new Grindrod ordinary shares for cash. The company said in a statement that the proposed issue price of any new shares would not be less than the 30-day average price for stock as at 19 August. The company’s shares, down more than 25% so far this year, increased 5.15% to R13.88 by mid-morning on the 19th. FTW reported recently that the company recorded a 42% fall in first half profits. Since the economic downturn, the shipping firm has seen its figures come under pressure as demand for raw materials has slowed.