Rights Issue GIH
03 August 2021
Capital Markets Board Approves Global Investment Holdings’ Capital Increase, while exercise of pre-emptive rights commences on 4th of August 2021
As announced on 22nd April 2021, the Board of Directors of Global Investment Holdings (“GIH” or the “Company”) had resolved to issue 32,411,159,007 ordinary shares, with a nominal value of 1 Kr each, increasing the issued share capital of the Company by TL324,111,590.07, from TL325,888,409.93 to TL650,000,000, to be paid in cash. Also, the transaction was subject to the Capital Markets Board (the “CMB”) approval, which has been granted on July 29, 2021.
In this context;
-32,411,159,007 new shares will be offered to the existing shareholders, for 15 days, starting from 4th August 2021 at the value of 1.5 TL for 1 lot (100 shares). Those willing to use their pre-emptive rights will be required to deposit the participation amounts to their accounts at their custodians, at TL 1.5 per share and with a take up ratio of 99.4548% of the shares that they hold.
-Remainder of the shares that have not been bought by the existing shareholders, will be offered to the public on the Stock Exchange at the price to be set on Borsa Istanbul, which will not be lower than the price for the exercise of pre-emptive rights of 1.50 TL for 1 lot (100 shares), for 2 business days.
Through the capital increase, GIH has moved towards a much healthier balance sheet and capital structure. With the assumption that all newly issued shares are fully subscribed or otherwise sold on the Stock Exchange, gross proceeds of 486,167,385TL will be raised from the share capital increase, which will predominantly be used to pay off debt at the Holding level, significantly reducing net interest expenses in the following quarters. As a reminder, GIH’s Consolidated Net Debt stood at 3,764.3mn TL, while standalone net financial debt was 582.5mn TL as of March 31, 2021. Nevertheless, with a deleveraged balance sheet and improved profitability, GIH is aiming to distribute dividend starting from FY 2022, as long as the economic background allows.
The Group has been taking solid effective steps to stabilise its liquidity position and manage its long & short-term debt obligations through i) the completion of the sale of the Group’s largest commercial port, Port Akdeniz, ii) the successful IPO of its natural gas subsidiary, Naturelgaz, on Borsa Istanbul, iii) equity injection through a rights issue in GIH, vi) completion of the refinancing of Eurobond, and the anticipated IPO of Consus Energy. These all aim to provide the Group with a more stable, deleveraged capital structure. All these efforts, coupled with the encouraging initial signs coming from the ports business, indicate a more positive outlook looking ahead.
A further announcement will be made when additional developments require further information disclosure. Should you have any questions, please do not hesitate to contact us and contact your global or local custodian for steps to be taken for the process.
