Taylor Maritime Investme... Share Discussion Threads

[sf5] 02/9/2022 16:16

Useful commentary the other day from David Stevenson:

''TMI – still a buy, especially after Grindrod deal
Another of my core buy recommendations – and member of my alternative funds trading list – is shipping fund Taylor Maritime Investments. Just this week the funds managers announced what I think is a fairly audacious offer to buy the remaining shares it doesn’t own (it already owns 26%) in US listed Grindrod Shipping Holdings. Taylor Maritime already holds a 26% stake in Grindrod. The proposal is for an aggregate value of $26 per share, comprising a cash purchase price of $21 per share to be paid by TMI and a special cash dividend from Grindrod of $5 per share to its existing shareholders. TMI has said that it intends to fund the transaction with a combination of existing cash, debt and the special dividend from Grindrod.

Here's the view of Liberum’s fund analyst:

“TMI originally acquired a 23% stake in Grindrod in December 2021 from Remgro, the company's largest shareholder, for $18 per share. Grindrod's portfolio is relatively complimentary to TMI's, given its sector focus. Grindrod’s fleet comprises 15 handysize vessels, 9 supramax/ultramax vessels and 1 product tanker. The company also charters in six supramax/ultramax vessels. The weighted average age of the fleet is eight years. Grindrod employs leverage (compared to TMI's long-term ungeared strategy) and had c.$209m outstanding at 30 June 2022. Given the complementary nature of the portfolios and TMI's large stake, a takeover transaction is the logical next step for the business. TMI is unable to grow through equity issuance given the current discount to NAV. The aggregate transaction value represents a 26.8% premium to Grindrod's closing share price on Friday. The shares rose 17% yesterday following the announcement of the transaction. The cost to TMI of the $21 cash purchase price would be $295.5m assuming all of the remaining shares are acquired. Further debt will be required as we estimate TMI will have c.$120m of cash including the special dividend and proceeds from recent vessel sales. TMI has a $160m revolving credit facility, of which $140m was drawn at 30 June 2022. “

Looking at Grindrod itself, over the period through to 2020 this business was loss making – ranging between $20m in 2018 and $60m in 2017- but did produce a whopping profit of $132m in 2021. At the cashflow level, in 2020 Grindrod produced net cash inflows at the operating level of $70m in 2020 and $204m in 2021. There’s also net long-term borrowing of $223m on the balance sheet against ships worth $469m. The shares are up 32% year to date. I suppose the big question is how TMI will raise the extra cash to pay for the deal.''

[sam 4224] 30/8/2022 07:58

yes , and grindrod have confirmed now in sole talks with tmip. If successful will be a much larger company generating even better profits than now !

[livewireplus] 30/8/2022 06:51

Interesting RNS out:Taylor Maritime Investments Limited Proposal to Acquire Grindrod Shipping Holdings Ltd

[sam 4224] 18/8/2022 07:50

Great share , excellent profits, excellent dividend, very experienced and active board. Have bought more today, now my largest holding

[livewireplus] 03/8/2022 15:42

Data shows that the shipping industry will this year rake in close to $60billion in profitshttps://www.dailymail.co.uk/news/article-11075831/Shipping-firms-acting-like-cartels-Maersk-predicts-25bn-profits.html

[livewireplus] 31/7/2022 22:58

David Stevenson: Could ship shortage keep my adventurous trust portfolio afloat?http://citywire.com/funds-insider/news/david-stevenson-could-ship-shortage-keep-my-adventurous-trust-portfolio-afloat/a2393536 

[gco1133a] 28/7/2022 19:34

A lot to like here. Discount to NAV and big increase in dividend. Good to see management looking after shareholders (there was also a special a couple of months ago).

[livewireplus] 28/7/2022 07:49

.... so present share price offer is about 20% discount to NAV .... .... outlook is reasonable so I am happy to remain a holder :-)

[livewireplus] 28/7/2022 07:46

At 30 June 2022 then unaudited NAV was USD 1.79 per ordinary share .... so that's about GBP 1.47 ...

[livewireplus] 22/7/2022 06:03

The NAV and trading update for the period ended 30 June 2022 will be released on Thursday 28th July 2022.

[livewireplus] 11/7/2022 14:45

Exports are hampered by cargo costshttps://scceu.org/exports-are-hampered-by-cargo-costs-business/

[livewireplus] 29/6/2022 17:31

Reasonable Trading Update a couple of days ago. Am happy to remain a holder after top slicing a few earlier in year....

[turbocharge] 25/5/2022 11:32

Anybody know what the ex-dividend date is for receiving the special dividend?

[shearluc] 20/5/2022 16:11

Divi appeared in my H-L account this afternoon.

[hpats01] 20/5/2022 13:54

Thanks for response Shearluc. So far this looks like a solid long term buy and hold.

[shearluc] 20/5/2022 13:19

Yes, it was scheduled for 19/05, it's Guernsey based, and sometimes is a day or so late. Special Divi to be paid 10/06.

[hpats01] 20/5/2022 13:08

The ordinary dividend was meant to be paid on the 19th of May wasn't it? I'm with HL so just wondering if it's processing or something but has anyone else received it? I've not had it late from them before.

[shearluc] 06/5/2022 06:45

Turning into a very nice little 'Earner'

[livewireplus] 06/5/2022 06:32

Special interim dividend in respect of the period to 31 March 2022 of 3.22 US cents per ordinary share announced.

[turbocharge] 05/5/2022 14:29

I'm keeping quiet :)

[turbocharge] 03/5/2022 11:48

Seems this one is quietly and steadily moving North without anybody noticing....

[livewireplus] 30/3/2022 06:38

RNS out for them for agreement to sell the oldest ship in their fleet.... with an IRR >200%

[livewireplus] 09/3/2022 12:37

... continuing the last post as the App threw a wobbly whilst I was typing...Very good news that the crew got back home safely. I wonder if the ship is left unmanned in port or if a local representative has been put on-board.

[livewireplus] 09/3/2022 12:32

Well the update mentions the ship stuck in Black Sea remains on charter and insured. So presume the insurance date is aligned with the charter period (which is not given). What happens at end of charter period will depend on situation there then - as will be possibility for insurance renewal at whatever rate. It was good that the company obtained advise not to release the relevant information until crew back home. safely. It is indeed good news that the crew managed to get