Sharenet Sites 
Sharenet Sites
GND/GNDP - Grindrod Limited - Grindrod announces a R2 billion capital raising supported by Remgro Grindrod Limited (Incorporated in the Republic of South Africa) (Registration number 1966/009846/06) Ordinary share code: GND ISIN: ZAE000072328 Preference share code: GNDP ISIN ZAE000071106 ("Grindrod") GRINDROD ANNOUNCES A R2 BILLION CAPITAL RAISING SUPPORTED BY REMGRO Grindrod and Remgro issued a joint announcement today regarding a proposed R2 billion capital injection into Grindrod to be implemented by way of a specific issue of new Grindrod ordinary shares for cash. In terms of the agreement between Grindrod and Remgro, Remgro will subscribe for 133 333 334 new Grindrod ordinary shares at a subscription price of R15.00 per share, an 8.8% premium to the unaffected 30 day VWAP. The new Grindrod ordinary shares represent approximately 22% of the enlarged ordinary share capital of Grindrod. Remgro will make an offer to Grindrod`s existing shareholders allowing them to participate in the capital raising. Grindrod shareholders will be offered a non-renounceable right to subscribe for 28.6657 new Grindrod ordinary shares in Remgro`s stead for every 100 Grindrod ordinary shares held. To the extent that qualifying Grindrod shareholders accept the Remgro offer, the number of new Grindrod ordinary shares to be allotted and issued to Remgro will reduce on a share-for-share basis with any resultant fractions of ordinary shares being rounded up or down to the nearest whole number. The transaction remains subject to the fulfilment or waiver of a number of conditions precedent, including approval by a 75% majority vote of Grindrod shareholders in general meeting. The transaction is in line with Grindrod`s communicated strategy to further diversify its portfolio of businesses and transform into an integrated logistics service provider. The group`s ability to offer full end-to-end supply chain services is a key competitive advantage. In pursuit of this strategy, Grindrod is seeking to accelerate the group`s pipeline of strategic capital projects in Southern Africa. The transformational capital expenditure programme, which will require in excess of R10 billion over the next five years, will result in substantial investment in Grindrod`s strategically positioned ports and terminals capacity, in particular phase 4 of the Maputo Coal Terminal. Commenting on the proposed transaction, CEO Alan Olivier said "Grindrod`s strategically located assets in Southern Africa positions Grindrod for exciting growth. The transaction will support our growth plans and further reinforces Grindrod`s strong financial position. Importantly, we will achieve further flexibility to respond to new opportunities as and when they arise," "We are delighted that Remgro is supporting the transaction, which we see as a strong vote of confidence in Grindrod and our stated strategy. The weight of Remgro`s strategic insight and financial resources is extremely positive for Grindrod, as we contemplate the next phase of the group`s development. The Remgro offer also affords our shareholders the opportunity to participate in the capital raising on the same terms." concluded Olivier. -ENDS- Media Enquiries For all media enquiries, please contact: Alison Briggs Group Marketing Manager, Grindrod +27 83 419 2970 Email: alisonb@grindrod.co.za Conference Call/Webcast Details Grindrod`s management team invites you to dial in to a conference call at 11:00 (South African time) on Tuesday, 20 September 2011. Access to an internet webcast will also be available. The details for the link to the webcast and the dial in details for the conference call are set out below: Webcast:http://themediaframe.eu/links/grindrod110920.html Audio cast: Live Call Access Numbers Country Access Number South Africa - Johannesburg 011 535 3600 UK (Toll-Free) 0 800 917 7042 South Africa - Johannesburg Alternate 010 201 6616 South Africa - Cape Town 021 819 0900 South Africa - Durban 031 812 7600 South Africa (Toll-Free) 0 800 200 648 Other Countries (Intl Toll) +27 11 535 3600 USA (Toll-Free) 1 866 752 6302 - * 0 for Operator Playback Access Numbers Playback Code: 18711# Country Access Number South Africa (Telkom) 011 305 2030 USA and Canada (Toll) +1 412 317 0088 Other Countries (Intl Toll) +27 11 305 2030 UK (Toll-Free) 0 808 234 6771 Durban 20 September 2011 Sponsor Grindrod Bank Date: 20/09/2011 07:06:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
