Grindrod confirms R160m acquisition

Johannesburg – Grindrod [JSE:GND] , a holding company with primary investment in freight movement and related industries said on Thursday that it had acquired 100% of the issued share capital of Fuelogic from Arrowbulk Carriers, Ukhamba Holdings, Calulo Petrochemicals and Graham Searle for R160m. 

The purchase came into effect on April 21 2010. 

Fuelogic is a bulk liquid fuel transporter and its operations include primary distribution of fuel from refineries and import facilities to terminals, depots and large customers; secondary distribution of fuel from terminals and depots to customers; and transportation of liquid petroleum
gas. 

"Although the demand for fuel has softened on the back of suppressed economic conditions, the long-term forecast for fuel demand remains robust with significant growth opportunities available in the cross border market. 

"Accordingly, the company had made a strategic decision to expand its existing service offering in the petrochemical sector," Grindrod said by way of a rational for the purchase.

- I-Net Bridge