First Choice buys back stake from cruise line
First Choice has bought back the 6.75% stakeholding in its business owned by Royal Caribbean Cruises for almost £200 million.
The operator said it has funded the redemption of the Preference Shares through a combination of cash and an expansion of its existing bank facilities.
Royal Caribbean has held the stake since 2000.
The buy-back will not impact the First Choice-Royal Caribbean joint venture Island Cruises which gains a second ship this year from the US company’s Celebrity Cruises.
Royal Caribbean said: “This venture continues to do well and will be expanded later this year with the addition of Horizon.”
First Choice chief executive Peter Long said: “Royal Caribbean’s investment in the business allowed the group to accelerate its expansion in Continental Europe, build its UK retail chain and helped us shape the group as it is today. The redemption of these Preference Shares reflect the financial strength of the company which is evident by our ability to raise additional UK credit lines from a highly supportive banking syndicate.”
The news came as Royal Caribbean saw second quarter net profits rise to $154.5 million against $122.2 million in the same period last year.
Report by Steve Jones
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