GIH Announcement: Rights Issue GIH

It was announced on March 14, 2017 that the Board of Directors of Global Investment Holdings had resolved and declared the issuance of 100 million new shares at TL 2.45 per share to be subscribed by F.A.B. Partners LP (“FAB”), and that the transaction was subject to certain regulatory approvals including the Capital Markets Board (the “CMB”).

As per CMB’s approval dated April 14, 2017, Global Investment Holding’s application regarding the capital increase has been approved, and, in line with CMB’s same dated resolution, the Board of Directors of Global Investment Holdings has resolved to issue up to 100,000,000 new shares to existing new shareholders and 100,000,000 new shares to FAB.

In this context:

  •  100,000,000 shares will be offered to be issued, for two days on the 12th and 13th of June 2017, to those who held Global Investment Holding shares as of April 14, 2017. Those willing to use their pre-emption rights will be required to deposit the participation amounts to the account named “Global Yatırım Holding A.Ş. Capital Increase Blockage Account” with Global Securities, at TL 2.45 per share and with a take up ratio up to 51.68% of the shares that they held as of April 14, 2017. Any unused preemptive rights will be cancelled.
  •  Following the completion of the rights issue, 100,000,000 shares issue will be issued to and subscribed by FAB.
  •  Shares issued in both issues (for both the existing shareholders and FAB) will be subject to a 1-year lock-up period.

FAB is an asset management firm backed by large global strategic investors. It is founded by ex-Goldman partner Dalinc Ariburnu and his former colleagues. In August 2016, FAB acquired CIFC, a New York based U.S. asset manager which manages USD 14 bn of assets. In October 2016, FAB advised and announced the largest fund ever raised in history, the USD 100 bn “Softbank  Vision Fund”. In February 2017, FAB arranged the acquisition of Fortress together with Softbank. Fortress is a US based asset manager, which manages USD 70 bn of assets globally.

FAB focuses on long term investments in finance, technology, hospitality, infrastructure and commodities industries.

The investment by FAB affirms the trust in the future of Turkey and Global Investment Holdings, this capital injection will further accelerate Global Investment Holdings’ growth in Turkey as well the rest of the world as a global investor in infrastructure and energy.