South African shipping line Grindrod Ltd may be gearing up to buy part of P&O Nedlloyd's services to the continent, after executives confirmed today the company was preparing a ZAR 750m ($113m) secondary share offering.

Grindrod finance director Tony Stewart is quoted in Johannesburg’s Business Report saying the company plans to sell shares for expansion.

The newspaper goes on to claim that the money will be used to buy some of P& O Nedlloyd’s services to the continent to meet regulators requirements in Maerk’s takeover of the company.

Business Report suggests Grindrod could charter the tonnage to a third competitor.

Grindrod