Global Investment Holdings (GIH or the Group) reports consolidated revenues of TL280.5mn for the first half of 2016, representing an increase of 20% compared to the same period last year; while announcing a consolidated EBITDA of TL79.3mn.

GIH announced its financial results for H1 2016. According to the disclosure, consolidated net revenues reached TL280.5mn compared to TL234.1mn last year, representing an increase of 20%.  All business divisions under the Company contributed to this increase, with the Port and Power/Gas/Mining divisions contributing the most.

GIH also announced that, in the first half of 2016, Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) amounted to TL79.3mn, compared to an EBITDA of TL77.7mn in the same period last year.

On a divisional basis, the Group’s Port Division revenues reached TL153.9mn in the first half of 2016, representing 28% increase over the same period of 2015. A significant portion of this increase is attributable to the contributions from the Group’s cruise port operations. Although affected by the seasonality and the tension in East Med; thanks to GPH’s well diversified cruise port network, GPH ports excluding Turkey managed to organically increase  total cruise passengers by 1.6% YoY in H1 2016. The increase was mainly driven by Singapore and Barcelona. When Valletta Cruise Port (VCP) acquisition effect for H1 2015 is excluded, total passenger base including Turkey indicates a pleasing 11.2% YoY inorganic increase in H1 2016. On the other hand,  the division’s EBITDA was TL83.1mn in H1 2016 compared to an EBITDA of TL62.2mn in H1 2015, indicating 34% increase. Despite the seasonality effect in both cruise and partially commercial segments as well as tension in the East Med, GPH managed to maximize revenue and EBITDA creation, in 1H 2016 thanks to contributions from Valletta Cruise Port since its acquisition in November 2015,   increasing share of turnaround passengers driven by Barcelona and Malaga, tariff flexibility at operational ports due to underlying concessions as well as tariff adjustments. Apart from the contribution of Group’s cruise business, GPH revenues – which are mainly denominated in USD and EUR – further benefited from the depreciation of TL in value against those currencies during the first half of 2016.

The Power/Gas/Mining Division reported revenues of TL97.2mn in the first six months of 2016, representing a 4% increase over the same period in 2015, mainly driven by the Company’s feldspar mining and power generation operations. Naturelgaz revenues stood at TL70.0mn as compared to TL77.7mn over the same period in 2015. GIH’s Power/Gas/Mining Division EBITDA consisted of CNG, feldspar mining and energy efficiency operations.  Reported EBITDA was TL9.6mn in H1 2016 compared to a TL12.5mn in H1 2015. 2015 figure included gains from asset sales amounting to 2.0mTL. Other than this, the decline is mainly attributable to lower average gas sales prices in 1H 2016 compared to 1H 2015, which is in line with the budget. Also, the shift of projected gas sales to some customers (asphalt and food) from the first half to the second half of the year has resulted in a temporary decrease in EBITDA.

GIH reported a consolidated net loss of TL45.1mn in H1 2016, compared to a net loss of TL51.6mn in H1 2015. The reasons for the loss were non-cash depreciation charges, and increase in net interest expenses. Depreciation and amortisation charges have increased from TL65.0mn in H1 2015 to TL77.7mn in H1 2016. Also, the Group has incurred TL70.8mn net interest expenses in 2016.

Commenting on the recent developments, GIH’s CFO, Kerem Eser, underlined the significance of the recent addition of Venice Cruise Port to GPH’s Portfolio. “The Terminals are in a strategic position, not only due to the uniqueness of Venice, but also the location. Venice attracts c.22mn tourists per annum, where VTP passengers make up for 1.6mn of those annually as of 2015. 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 represents a good infrastructure. Mr. Eser also mentioned that,  “in line with its aggressive inorganic growth strategy, GPH started negotiations on the share purchase of operating companies of Brindisi, Cagliari, Catania and Ravenna Cruise Ports in Italy to further solidify GPH’s dominant presence in the Mediterranean.  After Venice Cruise Port, once the acquisitions of the other Italian ports are completed, Global Ports’ passenger base is expected to boost to an astounding c.7.5mn. ” 

Mr. Eser, further commented on the highlights of the first half of the year, indicating that a proposal was approved, pursuant to Resolution of GIH’s General Assembly, to distribute a gross TL 0.051680, and a net TL 0.043928 per share in August, implying a dividend yield of 3.3%.

He further stated that aside from its CNG and Mining operations, the Group will continue its growth policy in renewable energy generation, by further developing its solar energy and biomass projects all the while seeking new opportunities in this budding sector.

As announced on June 23, 2016, the following proposal had been approved, pursuant to Resolution of GIH’s General Assembly:

In accordance with 2015 year-end consolidated financial statements prepared and audited in line with Capital Markets Board regulations, a gross TL 0.051680, and a net TL 0.043928 per share dividend shall be distributed  with ex date of  August 10, 2016 implying a dividend yield of 3.2%.

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”. 

In line with its aim to streamline the group structure and also to pursue new opportunities in the rapidly changing real estate sector in an enhanced organization and capital structure, Global Investment Holdings’ (“GIH”)Board of Directors have decided to consolidate all real estate assets/projects owned directly by the GIH itself under a new legal entity which shall be established through partial demerger of GIH. The transaction will not by itself result in any change on the consolidated financial statements of GIH as the new company will be a 100% owned subsidiary of GIH. Further since the result of the demerger on GIH's standalone financial statements will simply be a replacement of real estate with shares of the new company, there will be no impact on the capital structure, paid-in capital or the number of outstanding shares of GIH.

Accordingly, GIH’s Board of Directors have decided to apply to the Capital Markets Board of Turkey (CMB) to form the aforementioned entity through a demerger . Following the approval of the CMB, GIH should call for an Extraordinary General Assembly, as such decision of the Board of Directors has to be approved at General Assembly.

Subsequently, GIH will be evaluating the transfer of other real estate projects owned by other Group companies (such as  Pera REIT -Sumerpark Mall, Skycity Office Project- Global Ticari Emlak Yatirimlari A.S. -Van Shopping Mall-) under the same newly established subsidiary either by transfer of shares held by GIH in those Group companies or by any other appropriate methods.

Pursuant to Resolution of GIH’s General Assembly which was held today, the following proposal has been approved:

In accordance with 2015 year-end consolidated financial statements prepared and audited in line with Capital Markets Board regulations, a gross TL 0.051680, and a net TL 0.043928 per share with a nominal value of 1 TL dividend (to be funded from retained earnings) shall be distributed as first dividend until August 15, 2016.  Such dividend distribution implies a dividend yield of c.3% based on today’s market close.

As announced on 31st March 2016, the only bidder for the transfer of 65.98% stake in APVS, which in turn owns a 53% stake in Venezia Terminal Passeggeri S.p.A. ("VTP"), had been an international consortium formed by Global Ports Holding (GPH), Costa Crociere S.p.A, MSC Cruises S.A. and Royal Caribbean Cruises Ltd. It was also announced that 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.

VS notified the Tender Authority that it has decided to practice its pre-emptive rights for all of the 65.98% of APVS shares, which are subject to sale. After having exercised its pre-emptive rights, VS will transfer 48% of APVS’ shares to Venezia Investimenti S.R.L’ye (“VI”) (formed by the consortium members), based on the signed memorandum of understanding.

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. 

Venice Cruise Port, thanks to its geographic location and good connections with the rest of the Europe, is, and will continue to be, one of the most important homeports in Europe, with an annual passenger number of c. 1.7 million. Venice Cruise Port benefits highly from the arrival and departure of the cruisers, generating direct and indirect impacts that are much higher than those of the transit ports. 

Global Securities and Mazaya Qatar sign Memorandum of Understanding to establish Real Estate Investment Funds in Turkey, which is aimed at creating the first international real estate investment fund in Turkey...

Global Securities, a 77.4% subsidiary of Global Investment Holdings, announced that through its subsidiary Global MD Portfolio Management, it has executed a Memorandum of Understanding (MOU) to set up a strategic partnership with a strong real estate player in Qatar, Mazaya Qatar, to create Sharia compliant real estate investment funds, which will be offered to qualified investors, locally and internationally. These funds, which are intended to reach 250 million dollars, will be structured to focus on projects nearing completion and revenue generating assets in Turkey.

Established in 2008, Mazaya Qatar is a prominent publicly listed real estate investment company in Qatar, with an initial share capital of QR 1 billion. Mazaya Qatar is specialized in the overall real estate investment cycle such as development of residential and commercial assets, including its strategic investment portfolio with income generating assets. In line with its vision to diversify its investment portfolio geographically, Mazaya Qatar is considering partnering with a prominent financial services company in Turkey, with the purpose of structuring Sharia compliant funds in Turkey.

Real Estate Investment Fund structure is relatively new in the Turkish market, and is expected to appeal to both local and international investors. A partnership between Global Securities and Mazaya Qatar should provide a favorable foundation for building, structuring, and rolling-out real estate investment funds in Turkey.

Considering the strategic macro relationship and good relations between Qatar and Turkey, as well as the strong regional interest in Turkish real estate market, this new fund structure is expected to attract qualified individual and institutional investors in the Gulf region, while allowing investors to invest in real estate through a highly secure financial instrument instead of investing directly into real estate.

Global Ports Holding submits a binding offer for an indirect stake in Venice Cruise Port, as part of an international consortium…

Global Ports Holding (“GPH”), the 89.16% subsidiary of Global Investment Holdings,  has submitted a binding offer as part of an international consortium to the international tender by the APV Investmenti 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 Passeggeri S.p.A. (“VTP”).

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. 

Venice Cruise Port, thanks to its geographic location and good connections with the rest of the Europe, is, and will continue to be, one of the most important homeports in Europe, with an annual passenger number of c. 1.7 million. Venice Cruise Port benefits highly from the arrival and departure of the cruisers, generating direct and indirect impacts that are much higher than those of the transit ports. 

Global Investment Holdings (GIH or the Group) reports consolidated revenues of TL552.2mn in 2015, representing an increase of 55% compared to the same period last year; hile announcing a consolidated EBITDA of TL217.6mn, which represents 97% increase over 2014.

GIH announced its financial results for 2015. According to the disclosure, consolidated net revenues reached TL552.2mn compared to TL356.7mn last year, representing an increase of 55%. All business divisions under the Company contributed to this increase, with the Port and Power/Gas/Mining divisions contributing the most.

GIH also announced that, at the end of 2015, Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) amounted to TL217.6mn, representing 97% increase over the same period in 2014. 2015 EBITDA includes goodwill gains from asset acquisitions, as well as non-recurring project expenses, provisions and write-offs, amounting to a net TL26.8mn. Adjusting for such one-off items, operational EBITDA in 2015 was TL190.9mn, compared to TL103.0mn in 2014, representing an increase of 85%.

On a divisional basis, the Group’s Port Division revenues reached TL286.9mn in 2015, representing 45% increase over 2014. A significant portion of this increase is attributable to the contributions from the Group’s cruise port operations, driven by 10% increase in passenger numbers in YE 2015 compared to YE 2014, as well as tariff increases, and proforma effect of Creuers acquisition. Group’s total number of passengers reached 4.1mn in YE 2015 compared to 3.8mn, representing 10% increase through organic growth, surpassing global cruise passenger growth rate of 3.2% as well as Mediterranean cruise passenger growth of c.6% in 2015. The Group’s Port Division EBITDA reached TL175.1mn in 2015, including the TL16.6mn in negative goodwill gain from the acquisition of Valetta Cruise Port in Malta, and TL-35.4mn in project expenses related with acquisitions and capital markets. The comparable figure for the same period for 2014 was TL159.8mn, including TL51.9mn goodwill gain from Creuers acquisition, and TL19.0mn in project expenses. Adjusted for non-recurring items, operational EBITDA of the Port Division in 2015 was TL193.9mn, compared to TL126.9mn in 2014, representing an increase of 53%. Barcelona port revenues are consolidated only for the last quarter of 2014 after the Group acquired controlling stake. On a pro-forma basis (with full year Creuers effect) 2014 operational EBITDA would be TL153.4mn.

The Power/Gas/Mining Division reported revenues of TL218.3mn in 2015, representing a solid 68% increase over 2014. Naturelgaz revenues stood at TL180.1mn as compared to TL110.9mn over the same period in 2014. Additionally, Group generated TL31.0mn in revenues from the feldspar mining operations in 2015 compared to TL17.9mn in 2014. GIH’s Power/Gas/Mining Division EBITDA consisted of CNG, feldspar mining and energy efficiency operations. Reported EBITDA was TL26.5mn in 2015 compared to a TL12.0mn in 2014, representing an increase of 121%.

GIH reported a consolidated net loss of TL48.0mn in 2015, compared to a net loss of TL72.7mn in 2014. The main reasons behind the decrease were non-cash depreciation and foreign exchange charges, and increase in net interest expenses. Depreciation and amortization charges have increased from TL94.6mn in 2014 to TL137.2mn in 2015. Group’s port and mining operations have a natural hedge against fluctuations in TL’s value, generating TL26.7mn gain accounted for under the equity. On the other hand, Group’s unhedged net short FX position of TL86.1mn in value, related with long term bank loans mainly at Holding solo and certain energy subsidiaries level, created TL21.1mn non-cash foreign exchange losses. Also, the Group has incurred TL118.2mn net interest expenses in 2015, where the increase compared to last year is related with new acquisitions predominantly in port division, as well as capex investments in Group’s pursued power/gas/mining and real estate assets.

Commenting on the recent the developments, GIH’s CFO, Kerem Eser, underlined that EBRD’s 10.84% partnership at a consideration of €53.4mn, will be a major funding boost to speed up further growth of GPH in countries where the EBRD invests. Through EBRD’s support in acquisition lending, reinforcing corporate governance practices will be an important step further towards GPH’s planned international offering. Mr. Eser, also indicated that with GPH becoming a majority shareholder by increasing its shareholding in Valletta Cruise Port (Malta) from 10.14% to 55.60% in November 2015, has further enhanced GPH’s robust inorganic growth strategy overseas. Also, in line with this strategy, the addition of Dubrovnik Gruz Port (closing subject to procedural conditions), which caters to c.1 million passengers annually, is expected to generate c.Eur10mn by 2018, contributing to the GPH’s consolidated financials in the future periods.

Mr. Eser stated that, “We are very proud that Van AVM, the first shopping mall of Van, which was completed in a time frame of only 13 months, opened its doors to the public in December 2015, and since its opening, Van AVM has attracted 900,000 visitors.”

Mr.Eser mentioned that, the Group is pleased with healthy growth in its Power/Gas/Mining Division. He further stated that aside from its CNG and Mining operations, the Group will continue its growth policy in renewable energy generation, by further developing its solar energy and biomass projects all the while seeking new opportunities in this budding sector.

A preliminary Concession Agreement has been signed for the 40 year operating rights of Dubrovnik Gruz Port...

In the context of the announcement dated 16.10.2015, Global Ports Holding (“GPH”) is proud to announce that a preliminary Concession Agreement for the 40 year operating rights of Dubrovnik Gruz Port has been signed between Dubrovnik International Cruise Port Investment d.o.o. (the consortium where GPH has 75% and French based BOUYGUES BATIMENT INTERNATIONAL has 25% stake) and Dubrovnik Port Authority.

The Dubrovnik Gruz Port project comprises the construction and 40 year operating rights of a cruise terminal, shopping center, multi-storey parking lot, and a garage in the city of Dubrovnik, one of the most prominent tourist destinations in the Mediterranean. In addition to taking over the cruise operations and erecting a new cruise terminal; GPH will build and operate a shopping center in the concession area as well as a number of commercial spaces inside the terminal building and generate revenues from commercial, shopping and business premises. The total surface area subject to the concession is 28,000m2, with corresponding total length at 845m. The construction is expected to start in 2016, end by the end of 2018; and the construction only cost is expected to be c.Eur60mn. GPH is considering to finance up to 70% of investment works through a consortium of development and commercial banks.

Dubrovnik Gruz Port is located c.3km away from the Old Town, which is a UNESCO World Heritage Site and a popular tourist destination in the southern Croatia. Considered as a Marquee Port (a must-see port), the Gruz Port is the 10th largest in the world and 3rd largest in the Mediterranean in terms of cruise transit passengers, with an annual passenger number of c.1 million. Furthermore, the ongoing efforts to increase capacity of Cilipi (Dubrovnik) Airport, along with the planned direct highway connection to Dubrovnik should support the increase in the number of cruise passengers.

Dubrovnik region is one of the most outstanding tourist destinations in the Mediterranean, hosting in excess of 5m overnight stays annually, in addition to cruise passengers and daily tourists and has a relatively underdeveloped retail market, representing a considerable upside potential in the retail business. GPH aims to capitalize on the underpenetrated retail market in Dubrovnik and lack of direct competition, through the shopping mall with c.15,000m2 leasable area, which will be built in the concession area. Through the Gruz Port, GPH intends to form a similar business model to that of Ege Ports on a larger scale by integrating cruise / shopping complex; aiming to achieve a higher per Pax rental income at the Gruz Port, compared to Ege Ports’ Eur5.5 per Pax. The Gruz Port is located in the city center, and will cater to tourists and cruise passengers visiting the city, as well as locals. GPH’s goal is to create a new attraction center in Dubrovnik other than Old Town, while reducing the congestion of Old Town.

The Gruz Port is an important port in Europe, not only in transit passengers, but also in higher revenue turnaround calls, which have been increasing exponentially for the last few years. Accordingly, the new terminal building to be constructed will have the capacity to accommodate 5,000 turnaround passengers at once, as well as baggage storage facility. The Gruz Port is estimated to generate c.Eur10mn by 2018, contributing to GPH’s consolidated financials. Addition of the Gruz Port to the portfolio will further boost GPH’s leading position in the Mediterranean Cruise Port Market. GPH currently manages a passenger traffic of c.5mn (including Dubrovnik), which corresponds to a notable c.19% market share in the Mediterranean”.

Through its subsidiary Creuers, Global Ports Holding has been pre-qualified for Porto di Livorno 2000 privatization tender...

Creuers, a subsidiary of Global Ports Holding (GPH), has been pre-qualified for Porto di Livorno 2000 privatization tender and is among the companies that are invited to the tender, which was launched by the Port Authority of Livorno for the selection of a majority shareholder in the company; granting a concession to manage the Cruise Port of Livorno and give support and other connected accessory services, as well as a concession on the related State owned properties. The company manages the cruise terminal, the maritime passenger station, information service, car parks and transportation within the Port of Livorno. Geographically located in the center of the Mediterranean Sea, the Port of Livorno is strategically positioned for “ferries” due to its proximity to Sardinia and Corsica; as well as for “cruise”, as it serves the major tourist destinations of Florence and Pisa in Italy. The Port of Livorno is the 3rd national transit port in Italy, after Civitavecchia and Napoli; with 0.6mn passengers in 2014. At the same time, the port entails substantial ferries business, which brings stable and constant revenues.

On the other hand, our subsidiary Global Ports Holding, decided not to continue with the projects below:

- Acquisition of Riga Passenger Terminal LLC’s cruise and ferry passenger operations (a non-binding Letter of Intent had been signed on April 3, 2015)

- Tender for Operations, Maintenance, and Transfer of main ports of Republic of Cabo Verde (had become prequalified on October 1, 2015)

The Annual General Assembly of our Company, which took place on 30.09.2015 and where 2014 Operations and Financials as well as the amendment of 6.and 10.clauses of the Articles of Association were discussed, and approved at AGM, has been registered with the Istanbul Trade Registry.

Necessary notification has been given to the Central Securities Depository of Turkey (Merkezi Kayıt Kurulusu, MKK) as the last step of the capital decrease process (share buy back) with regards to the cancellation of 1.071.192.245 shares with a nominal value of 10.711.922,45 TL, corresponding to 5,24% of the issued share capital. This cancellation / redemption will be completed by our Company on 27.10.2015 with the Central Registry System.

Within the context of the capital decrease, only 1.071.192.245 shares with a nominal value of 10.711.922,45 TL, will be cancelled /redeemed out of the share buyback program therefore increasing the NAV per share  by 5,24pct for each share held.

The share price of the Company is expected to be adjusted by BIST (upward adjustment) on the day of cancellation (27.10.2015), to reflect the decrease in the outstanding number of shares. Accordingly, in line with its dividend policy, the cancellation process implies a dividend equivalent yield of c.5.5%, calculated at the current market capitalization (26.10.2015) of the Company.