Grindrod's share price surges after special dividend announcement

GRINDROD’S share price shot up 12.2% on Friday after shareholders cheered a special half-year dividend and news that the group is one of 11 companies that have met the requirements to operate rail services on parts of South Africa's state-owned railway network.

- EDWARD WEST

Grindrod on Friday declared a special half-year dividend of 32.2 cents a share for the six months to June 30. This was in addition to the 23 cents a share ordinary interim dividend. The share price closed at R14.63 on Friday.

The payout was despite global commodity headwinds, with sluggish prices in iron ore, lithium, graphite, and coal, as well as slightly lower volumes.

The confirmation of Grindrod’s third-party status was also received Friday morning from Transnet. “This achievement marks a significant milestone in South Africa’s rail reform journey, creating opportunities for private sector participation to contribute positively to South Africa's freight logistics system,” said Grindrod CEO Xolani Mbambo.

Mbambo announced his resignation in June, effective from December 31, 2025, when his notice period ends, and talent search specialists have been commissioned to find a successor.