Royal buys remaining Silversea stock?

[spinnaker2]

What will it portend if anything?

Edited July 10, 2020 by spinnaker2

[Silver Spectre]

Apparently 5.2million shares equating to about $250m at yesterday’s closing price. Not a lot of money against the original deal. I reckon Manfredi is getting out while he can and it doesn’t portend well towards the future of Silversea, or indeed cruising for the foreseeable future.

[Stumblefoot]

It will portend of less and less influence in decision making from Monaco.

[Observer]

59 minutes ago, Silver Spectre said:

 it doesn’t portend well towards the future of Silversea

 

I hope -- and think -- this is mistaken.  I think that SS is very fortunate to be part of RCCL.  Look, for example, of the funds they put into Shadow, just a year after Whisper had her dry dock without RCCL support.  SS will, I think/hope, benefit from the deep pockets and access to capital of its parent company.  I recall that other efficiencies are expected, such as reduced fees for credit card transactions, benefit of savings from being part of RCCL huge contracts for fuel/provisioning/etc. It's difficult to see how a free-standing SS in Monaco could have survived the current traumas.

[Randyk47]

At least the present management team is staying in place.👍

[TLCOhio]

28 minutes ago, Observer said:

I think that SS is very fortunate to be part of RCCL.  Look, for example, of the funds they put into Shadow, just a year after Whisper had her dry dock without RCCL support.  SS will, I think/hope, benefit from the deep pockets and access to capital of its parent company.  I recall that other efficiencies are expected, such as reduced fees for credit card transactions, benefit of savings from being part of RCCL huge contracts for fuel/provisioning/etc. It's difficult to see how a free-standing SS in Monaco could have survived the current traumas.

 

Interesting, sharp contrast in views between what Observer outlines above . . . versus . . . the viewpoint of Silver Spectre.  Only time will tell as to which perspective is correct!!  Many variables are at work/play right now.  Agree that given these current rocky seas that Silversea would not have survived without having the current RCCL connection (and its financial life-raft).

 

From MSN News and The Street this morning, they had this headline: “Royal Caribbean Buys Remaining Stake in Silversea for $245 Million” with these highlights: “Based on Thursday's closing price of $47.12, the 5.2 million Royal shares would be worth $245 million. That would put Silversea's valuation at $735 million, a hefty discount to the $2 billion valuation it garnered when Royal bought its two-thirds stake in July 2018.  The cruise industry has been upended by the coronavirus pandemic.  In March, Silversea saw its Silver Shadow ship barred from disembarking its passengers and crew in Brazil, as a passenger was suspected of having the coronavirus. Royal Caribbean expressed enthusiasm for its purchase Friday. 'Silversea has been a great fit for our company from the very first day,' Royal CEO Richard Fain said in a statement. Manfredi Lefebvre d'Ovidio, who took over the company from his late father, will serve as chairman of Silversea. Roberto Martinoli will remain its president and CEO.”.

 

Full story at:

https://www.msn.com/en-us/finance/companies/royal-caribbean-buys-remaining-stake-in-silversea-for-24245-million/ar-BB16A6kW

 

THANKS!  Enjoy!  Terry in Ohio

 

AFRICA?!!?: Fun, interesting visuals, plus travel details from this early 2016 live/blog. At 49,753 views. Featuring Cape Town, South Africa’s coast, Mozambique, Victoria Falls/Zambia and Botswana's famed Okavango Delta.

www.boards.cruisecritic.com/showthread.php?t=2310337

[Rocchi]

https://presscenter.rclcorporate.com/press-release/102/royal-caribbean-group-acquires-remaining-interest-in-silversea/

 

We can only hope it will be a good thing long term.

 

R.

[WesW]

From discussions with our TA (Travel Agent) believe having more SS decisions coming out of Florida than Monte Carlo will be good for the future direction/pricing of Silversea.

[Randyk47]

43 minutes ago, WesW said:

From discussions with our TA (Travel Agent) believe having more SS decisions coming out of Florida than Monte Carlo will be good for the future direction/pricing of Silversea.

My concern about that is when RCL first acquired a controlling interest in Silversea RCL’s fares for Azamara were higher for very similar length cruises with basically the same itinerary.   I know RCL has pushed Azamara as a luxury line and it may be close but not up to Silversea standards.  I have no interest in Azamara so I don’t know if they adjusted the fares fir what we’re at the time competing cruises.   

[Ladys Mom]

A possible upside now the RCL has bought all of Silversea is that there may be some reciprocity between the Azamara and Silversea affinity programs.  A possible downside for Azamara is that RCL will pour even fewer resources into the line. 

[spinnaker2]

Azamara ain't no Silversea. Not even close.

 

 

[TLCOhio]

1 hour ago, WesW said:

From discussions with our TA (Travel Agent) believe having more SS decisions coming out of Florida than Monte Carlo will be good for the future direction/pricing of Silversea.

 

Agree with the wise Wes above!!  While I am not as experienced with Silversea as others on this thread, our staff feed-back and personal contacts have been that the "bean-counters" in Monaco have not always had the best customer-service and leadership traits we would desire.  Much better experiences dealing with those in the South Florida area.  

 

THANKS!  Enjoy!  Terry in Ohio

[Silver Spectre]

32 minutes ago, spinnaker2 said:

Azamara ain't no Silversea. Not even close.

 

 

+100%

[ibyte2eat]

Silversea is buying in on the long.  If you do the math, SS worth 2B.  divided by 3, RCL would pay $666,666,666 for their last 1/3 ownership. RCL got it for a shopping $245 million of stock at $47.12 per share.  That equates to 5,199,490 Shares. Now, multiply that amount by the  the highest stock price RCL ever reached back in January ($135.05) and look what you get... $702,191,124.  Pretty dang close to the $666,666,666.  RCL negotiated this $245 purchase based on future value price pretty close to RCL's highest ever price price value, and then gave it in shares with the promise of valuation return, plus some.  SS must know something and has faith in a recovery in the cruise industry i.e. stock value and took the deal.  But they know that they will have to wait a bit.  Consider those extra millions as interest and faith money.

Edited July 11, 2020 by ibyte2eat
grammer

[Stumblefoot]

7 hours ago, TLCOhio said:

...the "bean-counters" in Monaco have not always had the best customer-service and leadership traits...

I think the big difference will be found in leadership.  One believes in performance metrics.  The other believes in seniority rules all.  I’ll let you decide where these tenets are based.

[saminina]

IMO, sooner RCL has complete control, better for the passenger class.   I know most posting on here are loyal fan club members.   But how can you continue to blindly sign up for cruises with a line you have been sailing for 20+ years?  Sure, comfort level while on board.   And honestly, I prefer the passenger mix on Silversea to other lines we sail.  But the company itself has been lacking for years versus their competition.  Obvious to anyone that has eyes to see.

[Reef Knot]

Will this now mean that RCL shareholder benefits will apply to Silversea? 

 

[DCCruiser57]

3 hours ago, Reef Knot said:

Will this now mean that RCL shareholder benefits will apply to Silversea? 

 

That will probably (and hopefully) never happen.

[DCCruiser57]

10 hours ago, ibyte2eat said:

Silversea is buying in on the long.  If you do the math, SS worth 2B.  divided by 3, RCL would pay $666,666,666 for their last 1/3 ownership. RCL got it for a shopping $245 million of stock at $47.12 per share.  That equates to 5,199,490 Shares. Now, multiply that amount by the  the highest stock price RCL ever reached back in January ($135.05) and look what you get... $702,191,124.  Pretty dang close to the $666,666,666.  RCL negotiated this $245 purchase based on future value price pretty close to RCL's highest ever price price value, and then gave it in shares with the promise of valuation return, plus some.  SS must know something and has faith in a recovery in the cruise industry i.e. stock value and took the deal.  But they know that they will have to wait a bit.  Consider those extra millions as interest and faith money.

 

I think we need to put this in perspective.  RCL paid $1 billion for 2/3 interest.  Thus, that would make the remaining 1/3 worth about $333 million, not $666 million.  Thus, paying $245 million at this time is a great deal for Manfredi, especially given the depressed value of RCL stock.

 

[Randyk47]

1 hour ago, DCCruiser57 said:

That will probably (and hopefully) never happen.

Are you confusing shareholder benefits with loyalty program benefits?   As I recall RCL has a $100 OBC for holding a required number of RCL shares.   This is not the same as advanced standing garnered through numbers of days cruising.  To the best of my knowledge RCL does not have reciprocity across its lines so advanced standing on Celebrity means little to nothing on Royal Caribbean Cruises.   

[Randyk47]

5 hours ago, Reef Knot said:

Will this now mean that RCL shareholder benefits will apply to Silversea? 

 

It should if it wasn’t already through RCL being the majority stockholder.  Now that Silversea is wholly owned by RCL the shareholder OBC  benefit certainly should apply.   

[Reef Knot]

2 hours ago, DCCruiser57 said:

That will probably (and hopefully) never happen.

 

What would be the objection to a bit of OBC for holding shares?

[TLCOhio]

10 hours ago, Stumblefoot said:

I think the big difference will be found in leadership.  One believes in performance metrics.  The other believes in seniority rules all.  I’ll let you decide where these tenets are based.

 

If given the choice of performance versus seniority, I know which one is my first choice preference.  I think that I can guess which location would be so labeled for these categories. Interesting insights and a solid, excellent way for making such comparisons. 

 

THANKS!  Enjoy!  Terry in Ohio

[Essiesmom]

58 minutes ago, Randyk47 said:

Are you confusing shareholder benefits with loyalty program benefits?   As I recall RCL has a $100 OBC for holding a required number of RCL shares.   This is not the same as advanced standing garnered through numbers of days cruising.  To the best of my knowledge RCL does not have reciprocity across its lines so advanced standing on Celebrity means little to nothing on Royal Caribbean Cruises.   

Royal and Celebrity match standings up to Elite/Diamond.  Azamara recognizes Celebrity Captains Club status.  EM

[DCCruiser57]

Sorry, I was referring to the loyalty benefits, but my recollection of shareholder benefits is that for the most part they could not be combined with other OBC.