Global Ports Holding Plc, (GPH), the Istanbul based and London listed company that is the world's largest independent cruise port operator, said it has agreed to sell Ortadoğu Antalya Liman Işletmeleri ("Port Akdeniz") to QTerminals W.L.L. a Qatari commercial port operating company, for an enterprise value of $140 million.

Port Akdeniz is a leading commercial cargo export port in Turkey, currently specialising in handling cargo containers and general and bulk cargo destined for global markets including those in Asia and the Middle East. If completed, the sale consequently means that GPH will become a pure cruise port operator.

“The net cash proceeds for GPH from this transaction at closing will be determined by deducting net debt of Port Akdeniz at closing as well as paying transaction-related costs and taxes. A small portion of the purchase price will be withheld by the buyer and paid 12 months after closing of the transaction,” the company said in a statement.

This conditional agreement follows the Strategic Review announced by the board on the 5 July 2019 and GPH's announcement on the 11 March 2020 that it had entered into exclusive negotiations over the sale of Port Akdeniz. The sale remains conditional, inter alia, upon obtaining certain regulatory clearances and approvals from various Turkish governmental authorities. The timing of the closing process is uncertain but could be concluded as early as the final quarter of this year, however there can be no certainty as to the final outcome. A further announcement will be made when it is appropriate to do so.

A successful closing of the sale will be an important element of the group' refinancing strategy for the $250 million Eurobond due November 2021. “While the board of Global Ports Holding believes the proposed disposal will also allow the GPH board and senior management to focus time and resources on continued investment into further growth opportunities in the global cruise port market. On completion of the sale, GPH will effectively become a pure-play global cruise port operator,’ the company said.

While a range of restrictions currently remain in place in regard to the return of meaningful cruise activity, GPH said it believes that the continued demand for cruising, as evidenced by strong booking patterns reported by the major cruise lines for 2021, is very supportive to the long term health of cruise tourism.