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GPH weighs takeover bid from its largest shareholder

CRUISE_Nassau_Dec_27_2023_record_day.jpg
A busy day at Global Ports Holdings' Nassau Cruise Port
Global Ports Holding is considering a takeover proposal from its controlling shareholder, Global Investments Holding (GIH).

The company said it received an 'indicative non-binding proposal,' which it will consider with its advisers.

GIH, which owns almost 59% of GPH, with the balance traded on the London Stock Exchange, is considering a possible cash offer of $3 per share.

GIH said it is 'convinced of the merits of moving the business into private ownership and intends to seek delisting of the company and [take] it private,' adding it is in discussions with potential providers of funding.

GIH has until July 12 to announce whether it intends to make a firm offer.

13.4m passengers and 47% revenue spike

On Friday GPH announced it had handled 13.4m passengers in the 12 months ended March 31, up from 9.2m the prior year.

Revenue totaled $172.7m, a 47% increase from the $117.2m in the 2023 reporting year. Adjusted EBITDA rose 47%, as well, to $106.9m

Co-founder, CEO and Chairman Mehmet Kutman called the 2024 reporting period 'one of significant achievement.'

He said; 'We successfully expanded our cruise port network, completed our largest-ever investment project and increased our shareholding at a number of key ports. In addition, we strengthened our balance sheet through a successful investment-grade-rated issuance of secured private placement notes and extended the concession length at a number of ports.'

The 2024 cruise season has started 'strongly,' Kutman said, adding: 'We are well positioned to be a key enabler and beneficiary of the cruise industry's continued growth and success in the years ahead.'

Outlook

Based on calls booked, GPH expects to handle more than 16m passengers in the 2025 reporting period. Including equity-accounted ports, annual passenger volumes are projected to reach nearly 20m.