Acquisition of Tate & Lyle South African Terminals

Wednesday, May 30, 2007

Grindrod today announced its acquisition of Tate & Lyle Molasses South African terminal operations in Durban and Cape Town.The amount of the transaction was not disclosed. Tate & Lyle’s terminal operations in South Africa consist of port side liquid bulk storage and transit facilities in Durban and Cape Town.The Durban facility is located in Maydon Wharf and caters mainly for storage and export of molasses whilst the Cape Town terminal caters for the import of various chemicals and vegetable oils. Laurence Stuart-Hill, Grindrod Director said “Grindrod’s strategy for expanding its Landfreight business includes the development and establishment of port side tank terminals.Grindrod to date has expanded rapidly in dry terminals but has yet to make an entry into tank terminals.” He went on to say, “Grindrod through Unicorn, its tanker operation has significant expertise, experience and business relationships in the liquid bulk sector.This experience extends to both petroleum and chemical products making sense that the Group expand into the tank terminal industry and Tate & Lyle’s operations provided an immediate entry into the market.” The terminal operations of Tate & Lyle South Africa will be branded Grindrod Tank Terminals. Chris Roberts speaking from Tate & Lyle in London – “Due to the decline in molasses volumes available for export from Durban the strategic importance to Tate & Lyle of ourSouth African terminal operations declined. As a consequence Tate & Lyle wished to find a new owner of the business who would invest in, and grow these terminal operations. Tate & Lyle is therefore pleased to have found a suitable buyer for its South African storage activities in the form Grindrod.” Stuart-Hill added “The acquisition will be 100% owned by Grindrod but will be structured in a way that will introduce an empowerment partner.We see this acquisition as a significant expansion opportunity as the ports in South Africa currently do not offer shippers a substantial choice in terms of service providers.A new entrant into the market will provide efficiencies, competition and greater volume to service the growing South African economy.” “Grindrod intends to invest significantly supporting the current business and customers and to expand into other areas servicing a greater range of products.This will be done through greenfields projects which rely on securing land within the port jurisdictions for development and linkage through pipelines to appropriate tanker berths.There is a growing demand for petroleum storage and transit facilities in the ports as demand in South Africa for petroleum products increase.This demand will likely be serviced by more imported product.An opportunity also exists to provide portside tank facilities for import licensees which are in the process of being appointed for the importation of such fuels.” Grindrod is also looking at establishing a bulk liquid terminal in the port of Maputo which will service the growing demand for chemical and vegetable oils in the Mozambican market.In time this facility will also service the Gauteng market.Grindrod has a shareholding in Maputo Port Concession Company, which is responsible for the development and operation of the Maputo port.

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