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Expedition to Grindrod (NASDAQ: SMILE) +30.9% post-market Thursday after disclosing plans for a selective capital reduction, offering participating shareholders $14.25 per share to cancel approximately 17.67% of outstanding shares; shares closed at $10.54 in regular trading.
Grindrod (GRIN) said selective capital reduction will result reducing the issued share capital from ~$290 million made up of 19,685,590 shares to ~$240 million made up of 16,206,365 shares.
The deal, funded by the company’s existing cash reserves, aims to provide “an immediate and certain exit opportunity for shareholders at an attractive premium to the company’s share price.”
The proposal is subject to approval at the next extraordinary general meeting and various regulatory conditions.