RE: Cruise Ships1 May 2024 14:19
I don’t think SAGA will sell the Cruise Ships as they now make most of the Profits !
These ships are worth £1B in todays market.
SAGA Net Debt at year end was £637M
As interest rates fall and profits rise the debt will be paid down and refinanced.
I think the smart play is to sell the Insurance business and the new relationship with Ageas suggests that may happen. Ageas recently bid for Direct Line.
It’s difficult to determine the value of the Insurance business but Ageas have a great insider view and a relationship.
The current Market Cap of SAGA at £155M is
Crazy Cheap !!!!
A Sale of the Insurance business could potentially wipe out the debt and leave a Cruise and Travel Business making close to £100M.
Apply a very conservative multiple of 6 times profits and you see the Value upside
Then SAGA will be Sailing !!