Tourlite Capital Sends Letter to Board of GasLog Partners LP
Tourlite Capital Management has urged the Board of Directors of GasLog Partners LP (NYSE: GLOP) to reconsider the
Their analysis cites that GasLog’s EBITDA projections have notably improved and a reduction in net leverage adds substantial equity value. Furthermore, they argue that the proposed distribution is misleading compared to historical dividends.
- Tourlite estimates fair value between $10.00 - $12.00, indicating a potential premium of 16% - 39% over the current offer.
- GasLog has successfully reduced its net leverage, increasing the company's valuation.
- The current offer of $8.65 per share is perceived as a disservice to shareholders and significantly below fair market value.
- Projected EBITDA growth indicates that the current offer does not account for improved financial performance.
Calls for Board to reconsider current
Estimates a fair value between
Urge shareholders to vote against the current offer
The full letter can be downloaded at tourlitecapital.com. Follow Tourlite on Twitter @_Tourlite for additional information and important updates.
The full text of the letter follows:
The Board of Directors
69 Akti Miaouli
18537 Piraeus
Dear Members of the
We are writing on behalf of
We urge the Board of Directors and the Board’s Conflicts Committee to reconsider the current price offered for GasLog, which significantly underestimates the fair value of the assets. We believe the current offer of
Tourlite estimates a fair value between
There are multiple reasons shareholders should not consider a bid for less than
-
In
February 2021 , Evercore prepared materials for the Special Committee of the Board of Directors. These materials commented on projections and valuation metrics related to the acquisition by Blackrock. Referring to this third-party analysis, it supports our view that the current offer is substantially below fair value.1
At the time, the low end of the peer group multiple was over 8x EBITDA. Since then, 2022 and 2023e EBITDA is >25% higher than prior projections. A conservative estimate for normalized 2025 EBITDA of$213 million 8% discount rate would imply a share price of approximately$10
-
GasLog has been effectively reducing its net leverage over the past few years. This is highly accretive to the Company’s valuation. An additional
$100 million $1.89 20% of the current share price.
-
The stated “Special Distribution” of
$3.28 $2 $20 $2 23% .
Based on our detailed analysis and our estimate of fair value, Tourlite plans to vote AGAINST the current bid of
As a next step, we look forward to discussing our recommendations with you over the next several weeks. Our goal is to align the interests of all parties, and Tourlite would welcome the opportunity to engage closely with the Board of Directors and management throughout this process.
Tourlite greatly appreciates the Board’s time in considering our thoughts and analysis. We strongly believe reconsidering the current offer is in the best interest of the Company’s shareholders. For full disclosure, Tourlite and its affiliates own shares of GasLog (GLOP) and GasLog Preferred (GLOP 8 ⅝) and stand to benefit if the share price increases.
Best Regards,
Managing Partner
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About Tourlite
View source version on businesswire.com: https://www.businesswire.com/news/home/20230412005732/en/
(646) 504-4047
info@tourlitecapital.com
Source:
FAQ
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