![Enter the Bizcommunity Loeries tote bag design competition and win 2 x VIP Loeries tickets](https://biz-file.com/c/2408/747649-64x64.jpg?1)
Grindrod, a boost for Africa
![Alan Olivier, Chief Executive of Grindrod says the company will raise R4bn to put into infrastructure development in Africa. Image: Grindrod](https://biz-file.com/c/1405/198154.jpg)
With many important rail and port facilities spread throughout Africa, where infrastructure development is generally poor or non-existent, Grindrod often has to invest in and build, or improve, the facilities it needs.
This makes the whole transport process - which often starts in coal or iron ore mines and ends with the raw materials on Grindrod vessels being exported overseas - more efficient.
Grindrod's board agreed at the end of last month to raise R4bn via an equity issue, about three-quarters of which will be spent on infrastructure development.
Chief Executive Alan Olivier says this will result in the group spending about R10bn on infrastructure over the next three years. "The company has a significant pipeline of expansionary capital projects," he says.
Much of the immediate capital spending is likely to be on rail development, though further expansion at the Maputo and Richards Bay coal terminals has been mentioned. Also under consideration are the bulk liquid and oil storage facilities at Saldanha Bay and Coega.
The remainder of the R4bn equity funding will be used on rearranging Grindrod's BEE structure, initially by buying-back the interests of empowerment partners Calulo and Solethu, and then setting up a new BEE transaction which will include JSE-listed Brimstone in the new consortium.
After the deal is wrapped up - the target is the end of next month - the new BEE grouping will own 8,5% of Grindrod, at the listed group level.
At the conclusion of the BEE deal, Grindrod minority shareholders will be offered a claw-back to purchase Grindrod shares from Grindrod and major shareholder Remgro
Source: Financial Mail via I-Net Bridge
Source: I-Net Bridge
![](https://biz-file.com/b/1206/36520.gif?3)
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za![](https://cdn.bizcommunity.com/f/2408/Loeries-Tote-bag-competition.gif)
![](/res/img/s.gif)