Global Ports Holding PLC: Signs sale and purchase agreement to sell Port Akdeniz

DJ Signs sale and purchase agreement to sell Port Akdeniz

Global Ports Holding PLC (GPH) 
Signs sale and purchase agreement to sell Port Akdeniz 
 
21-Oct-2020 / 10:45 GMT/BST 
Dissemination of a Regulatory Announcement that contains inside information 
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
            Global Ports Holding Plc 
 
            Signs sale and purchase agreement to sell Port Akdeniz 
 
Global Ports Holding Plc ("GPH" or "Group"), the world's largest independent 
     cruise port operator, is pleased to announce that following a period of 
  exclusive negotiations it has entered into a conditional sale and purchase 
    agreement to sell Ortadogu Antalya Liman Isletmeleri ("Port Akdeniz") to 
        QTerminals W.L.L. ("QTerminals"), a Qatari commercial port operating 
    company, for an enterprise value of $140m. The net cash proceeds for GPH 
from this transaction at closing will be determined by deducting net debt of 
     Port Akdeniz at closing as well as paying transaction-related costs and 
  taxes. A small portion of the purchase price will be withheld by the buyer 
            and paid 12 months after closing of the transaction. 
 
 Port Akdeniz, the Group's largest commercial port concession, operates Port 
    Akdeniz-Antalya in Turkey, under a concession agreement which runs until 
 August 2028. Port Akdeniz-Antalya is a leading commercial cargo export port 
  in Turkey, currently specialising in handling cargo containers and general 
  and bulk cargo destined for global markets including those in Asia and the 
      Middle East. In the year ended 31 December 2019, Port Akdeniz reported 
       Container Throughput volumes of 150.9k TEU and General and Bulk cargo 
    volumes of 589k tons, generating revenue of $47.5m and EBITDA of $37.4m. 
 
    This conditional agreement follows the Strategic Review announced by the 
board on the 5 July 2019 and GPH's announcement on the 11 March 2020 that it 
  had entered into exclusive negotiations over the sale of Port Akdeniz. The 
     sale remains conditional, inter alia, upon obtaining certain regulatory 
 clearances and approvals from various Turkish governmental authorities. The 
  timing of the closing process is uncertain but could be concluded as early 
    as Q4 2020, however there can be no certainty as to the final outcome. A 
          further announcement will be made when it is appropriate to do so. 
 
 A successful closing of the sale will be an important element of the Group' 
    refinancing strategy for the $250m Eurobond due November 2021. While the 
board of Global Ports Holding believes the proposed disposal will also allow 
the GPH board and senior management to focus time and resources on continued 
      investment into further growth opportunities in the global cruise port 
  market. On completion of the sale, GPH will effectively become a pure-play 
            global cruise port operator. 
 
    While a range of restrictions currently remain in place in regard to the 
         return of meaningful cruise activity, the Company believes that the 
      continued demand for cruising, as evidenced by strong booking patterns 
 reported by the major cruise lines for 2021, is very supportive to the long 
            term health of cruise tourism. 
 
          Global Ports Holding's Chairman and Co-founder Mehmet Kutman said: 
 
"Port Akdeniz has been an integral part of GPH since 2006, and it has played 
   a pivotal role in the successful development of the Group over the years. 
      However, as GPH continues to pursue growth in the exciting cruise port 
    market, it is now time for the stewardship of Port Akdeniz to pass to an 
       organisation that is primarily focused on the Commercial port market. 
 
    I believe QTerminals, as a leading global commercial port operator, will 
  prove to be an ideal home for Port Akdeniz and that all local stakeholders 
    will benefit from QTerminals stewardship of the port in the years ahead. 
 
The sale will further advance the already strong bilateral relations between 
Turkey and Qatar and it is a deal that I expect to be warmly received by all 
            local, regional and government stakeholders." 
 
            About QTerminals: 
 
     QTerminals is a terminal operating company jointly established by Mwani 
Qatar (51% shareholding) and Milaha (49% shareholding) to provide container, 
   general cargo, RORO, livestock and offshore supply services in Phase 1 of 
   Hamad Port, Qatar's gateway to world trade. QTerminals is responsible for 
          enabling Qatar's imports and exports, its maritime trade flows and 
            stimulating economic growth locally and regionally. 
 
                        CONTACT 
      For investor, analyst and             For media enquiries: 
     financial media enquiries: 
 Global Ports Holding, Investor             Global Ports Holding 
                      Relations 
                   Martin Brown                      Ceylan Erzi 
Telephone: [phone]     Telephone: [phone] 
Email:                           Email: 
[e-mail]   [e-mail] 
 
ISIN:          GB00BD2ZT390 
Category Code: DIS 
TIDM:          GPH 
Sequence No.:  86268 
EQS News ID:   1142150 
 
End of Announcement EQS News Service 
 
 

(END) Dow Jones Newswires

October 21, 2020 05:45 ET (09:45 GMT)