Saudi Arabia's Public Investment Fund takes 8.2% stake in Carnival

Ruben Hill
April 9, 2020

Saudi Arabia's Public Investment Fund has taken an 8.2% stake in Carnival, the world's largest cruise company, as of March 25, the fund said in a filing to the US Securities and Exchange Commission published Monday.

According to the details, the KSA's Public Investment Fund has now owns 8.2% stakes in the International Cruise Line by purchasing 43.5 million shares on Monday.

PIF, which manages over $300 billion in assets, is also an investor in Uber Technologies (UBER) and electric auto company Lucid Motors. As of last week's close, the stake was worth $369.4 million (Dh1.34 billion).

At the time of writing, Carnival Corporation & Plc [NYSE:CCL] shares were up 22.97% to $10.44 along trading volume of 143,163,678 shares. Shares of CCL stock have fallen more than 80% since the beginning of the year.

Carnival and other cruise lines have sought to preserve liquidity as revenue dries up.

Carnival surged as much as 18 per cent to $10.04 Monday in NY after the fund said in a filing that it holds 43.5 million shares of the cruise company. It also closed its offering of $1.95 billion in 5.75% senior convertible notes due in 2023. Some $4bn in bonds were priced with an 11.5 per cent coupon last week.

"If Carnival can reinstate some cruises after 12-16 weeks, I do not believe it will become insolvent", a SeekingAlpha analyst said.

"The risk-reward is appealing because the next eight months, the industry has an opportunity to gradually recover from this crisis", Mr. Curtis said. In New York, the stock was up 21% at USD10.28 on Monday.

The company said last week that it expects most of its ships to be idled for a prolonged period.

Other reports by Click Lancashire

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