Global Ports Holding adds Venice Cruise Port, Mediterranean’s Largest Homeport, to its Expanding Portfolio; stepping in Italy and further enhancing its dominant position in the Mediterranean…

Global Ports has started negotiations on the share purchase of Brindisi, Cagliari, Catania and Ravenna Cruise Ports in Italy…

As a reminder, Global Ports Holding (GPH) had submitted a binding offer on 24 March 2016, as part of a strong international consortium to the international tender by the APV Investimenti S.p.A (owned by Venice Port Authority) of Italy, for the transfer of its 65.98% stake in APVS, which in turn owns a 53% stake in Venezia Terminal Passegeri S.p.A (VTP). The international consortium formed by Global Ports Holding (GPH), Costa Costa Crociere S.p.A, MSC Cruises S.A. and Royal Caribbean Cruises Ltd. had been the only bidder for the aforementioned tender, while the tender result was subject to the waiver of pre-emption rights by Venetto Sviluppo (“VS”), the other shareholder of APVS with the first degree pre-emption rights, and the other 3 shareholders of VTP with second degree pre-emption rights.

We announced on 10th May 2016 that APVS’ other shareholder, Venetto Sviluppo (“VS”), exercised its pre-emptive rights for this process, and would transfer 48% of APVS’ shares to Venezia Investimenti S.R.L. (VI) (formed by the consortium members), based on the signed memorandum of understanding.

On the other hand, on 1st July 2016, the transfer of Finpax S.r.l. (“Finpax”) shares representing 85.85% of its capital to VI (the consortium) was completed by Finpax shareholders. Finpax owns 22.15% of VTP shares. As a result of transfer, the Consortium which Global Ports is a member of, became the controlling shareholder of Finpax that owns 22.18% of VTP shares.

As per our announcement dated 10th May 2016; after having completed the pre-emption process regarding  APVS share sale, VS has completed the transfer of 48% APVS shares it owned post-preemption, to VI (the Consortium). 

As a result of this transfer, the Consortium which Global Ports is a member of, became a 44.48% shareholder of VTP indirectly, including the previously acquired Finpax shares. Total purchase price for the acquisition to be paid by Global Ports, which is one of the four equal members of consortium, is Euro 7,665,760.47. Mr. Mehmet Kutman, the Chairman of Global Ports, will take seat at VTP’s Board of Directors as a board member.

Additionally, VS, the 51% shareholder of APVS, has a put option to sell its shares in APVS partially or completely (up to 51%); while this option can be exercised between 15th May 2017 and 15th November 2018. If VS exercises the put option completely, VI will own 99% of APVS and accordingly 71.51% of VTP. In the case VS decides to exercise this option, it will be announced publicly.

Regarding this option, like other members of the consortium, Global Ports has also provided a Bank Letter of Gaurantee in the amount of Euro 4,873,715.52 .

Aside from the acquisition process of Venice Cruise Port,  Global Ports has started negotiations on the share purchase of operating companies of Brindisi, Cagliari, Catania and Ravenna Cruise Ports in Italy. After Venice, potential acquisitions of these four Italian ports should enhance Global Ports’ presence in Italy, which in total hosted c.0.5mn passengers in 2015.

The Venezia Terminal Passeggeri S.p.A. operates in the Marittima,S.Basilio and Rivadei Sette Martiri areas, stretching over a surface more than 260,000 sqm, of which the Terminals occupy 47,267sqm. The Terminals are in a strategic position, not only due to the uniqueness of Venice, but also the location, which allows an easy access to the city, and to all the attractions that surround Venice. The Company managing Venice Cruise Port, VTP, has a concession for the management of the cruise terminal until 2024; however, there may be extensions to the concession in return for additional investments to the port.

Being among world’s most famous and significant tourism centers, Venice attracts c.22mn tourists per annum, where VTP passengers make up for 1.6mn of those annually as of 2015. VTP  is the largest homeport in the Mediterranean with c.1,4mn homeport passengers, while homeport passengers constitute 86% of total passengers as of 2015. A convenient and an adequate airport nearby, is a “must-have” feature for a cruise port to carry out homeport operations. Accordingly, there is strong synergy between the cruise port and the airport in Venice in terms of passenger traffic. Venice Airport already hosts over 11mn passengers annually  as of 2015, while ongoing improvement and expansion works are already under way. Venice Airport is expected to support the turnaround potential of Venice Cruise Port . Thanks to The presence of a convenient and expanding airport, sufficient infrastructure, and established accommodation facilities, help Venice stand out as a  significant starting and end point for cruises. Moreover, Venice is one of the rare ‘marquee’ cruise destinations, where the city centre and the port are so closely linked, with a transit system which represent a good infrastructure. All in all, Venice Cruise Port, owing to its geographic location and good connections with the rest of Europe, is, and will continue to be, one of the most important homeports in Europe

Mehmet Kutman, the Chairman of GPH indicated that, “As GPH, we are the largest cruise port operator in the world  with solid presence in Mediterranean and Asia Pacific, capturing c.20% share in the Mediterranean with over 5.5mn passengers. Now that we have Venice in our portfolio,  our passenger number will be boosted significantly, exceeding 7mn. We have achieved a major milestone in our strong growth strategy, enhancing our leadership by expanding our presence to 8 countries through 11 ports.

Mr Emre Sayin, the CEO of GPH pointed out that, “Venice Cruise Port is the “Number 1” homeport in Mediterranean with c.1.4mn homeport passengers, slightly surpassing Barcelona Cruise Port, which is also in our expanding portfolio. Therefore, Venice stands out as a top priority for us both as a city and a cruise port. I believe that, as largest homeport in Med, Venice will be a major contributor to our cruise port network by means of creating synergy”. 

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