Freight moving company Grindrod Shipping Holdings (GRIN -1.68%) had quite a memorable Monday on the stock exchange. The Singapore-based logistics specialist saw its shares rise by nearly 17% on the day, thanks to an impending buyout.
Grindrod divulged in a pair of regulatory filings that Taylor Maritime Investments had submitted a non-binding, indicative offer to acquire the company. It is offering $26 per share for its target; in reaction, investors bid Grindrod's U.S.-listed shares up to nearly $24. Grindrod said that the offer was formally presented last Thursday, Aug. 25.
The two companies have agreed to grant Taylor Maritime a period of exclusivity to negotiate the deal. Grindrod did not specify how long this period would be.
Taylor Maritime is a U.K.-listed shipper that owns and operates a fleet of dry bulk vessels. On its website, it says that it aims "to create value for investors by focusing on an area of the market which is inherently robust as it is centered around constant demand for necessity goods."
The British company is already a major shareholder in Grindrod, with a stake of more than 4.9 million shares in its peer. This comprises a holding of roughly 26%.
Outside of the two Grindrod filings and an accompanying one from Taylor Maritime, neither company has yet made formal statements on the matter. While excitement in Grindrod is certainly justified to an extent, investors should keep in mind that the offer is non-binding and, therefore, subject to change or even cancellation. Let the buyer beware.