GND/GNDP - Grindrod - Cautionary Announcement

GND/GNDP - Grindrod - Cautionary Announcement                                   
Grindrod Limited                                                                
(Incorporated in the Republic of South Africa)                                  
(Registration number 1966/009846/06)                                            
Share code: GND & GNDP                                                          
ISIN: ZAE000072328 & ZAE000071106                                               
("Grindrod" or "the Company")                                                   
CAUTIONARY ANNOUNCEMENT                                                         
Shareholders are advised that the Company has entered into negotiations with a  
potential strategic partner and provider of growth capital ("Potential          
Strategic Partner") regarding a potential capital injection of up to R2         
billion into Grindrod by way of a specific issue of new Grindrod ordinary       
shares for cash ("the Proposed Strategic Investment").                          
Shareholders are advised that the proposed issue price of any new Grindrod      
ordinary shares that would be issued in terms of the Proposed Strategic         
Investment will not be less than the 30 trading day volume weighted average     
price of Grindrod ordinary shares as at 19 August 2011. The Proposed Strategic  
Partner has indicated an intention to offer Grindrod ordinary shareholders the  
opportunity to acquire a pro-rata share of any new Grindrod ordinary shares     
issued in terms of the Proposed Strategic Investment at the proposed issue      
price immediately following implementation of the Proposed Strategic            
Investment.                                                                     
Whether or not negotiations are successfully concluded, the Proposed Strategic  
Investment may have a material effect on the price of the Company`s             
securities. Accordingly, shareholders are advised to exercise caution when      
dealing in the Company`s securities until a further announcement is made.       
Sponsor                                                                         
Grindrod Bank Limited                                                           
Durban                                                                          
22 August 2011                                                                  
Date: 22/08/2011 12:42:09 Supplied by www.sharenet.co.za                     
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