What do Greenhill Investments – Kiloman say about Ellactor projects?

The announcement (entitled: Six lies of Ellaktor and one truth) is as follows:

Six Ellaktor lies and one truth
Lately we have been watching the management of Ellaktor going in the wrong direction, trying to attribute the responsibilities for its negative performance to everyone else except its own decisions or omissions. Lately we have been patiently watching opinions, publications and arguments that are not valid but we are obliged to inform the investing public and the general public about lies and inaccuracies when they are officially stated by the management of the Ellaktor Group in which we are key shareholders.

We believe that the company in which we have invested, like other shareholders, must be managed with truth, with courage, with knowledge and above all with the restoration of a sense of trust. That is why we have a sad duty to publicly and clearly reject some of the lies that have been heard recently.

• Lie one: “We undertook projects worth 262 million and only 15% of these projects come from the previous administration.”
The truth is that: Of the projects amounting to 262 million, 246.76 million euros are those for which the previous administration submitted bids. This is not our claim but it results from the half-year results announced by the company in 2021. The relevant table is attached.

• Lie two: “We renegotiated all the projects.”
The truth is that public works in both Greece and Romania are not open to new negotiation, nor are the contracts that have been signed arbitrarily and unilaterally overturned. They may mean that they are renegotiating with some subcontractors, but this is not a pretext for delaying projects either, and if so, the result of this renegotiation must be known.

• Lie three: “We participate in all the projects that are announced.”
The truth is that Aktor participated in only seven of the 101 projects included in the ESIDIS list (www.promitheus.gov.gr) that lists the public projects announced in Greece. In Romania things are worse as the company has not participated in any new tenders in the last ten months. This table is also attached.

• Fourth lie: The losses written in the three years 2018 – 2020 amounted to 470 million euros and are responsible for the current woes.
The truth is that the previous management of the company, which is often derided by the current one, took over in September 2018 and can hardly be responsible for the results of the year. In 2019, the company showed losses of 114 million euros that came from the failure of photovoltaics in Australia, the person responsible for which E. Sarantopoulos, participates in the current administration!
In the third quarter of 2020 there was a loss of 25 million euros and at the end of the year the new management made a loss forecast of an additional 122 million euros. In the first half of 2021, in addition to these forecasts, the current administration incurred losses of an additional 65 million euros. Losses are among them and they enjoy the benefits of management.

• Fifth lie: “Liability for compensation of Atkins in the work of Qatar.”
The truth is that: the arbitration of the British company Atkins against the consortium in which Aktor participated started in 2017, and obviously concerns older events. It is obvious that it is in charge of projects and administration before 2017 with very clear responsibilities of those in charge at the time.

• Lie Six: “The President of Aktor does not control the company P&C Development”
The truth is that this is the family business of the head of Aktor and it is not a test to work opaque with the listed company even if it is so “specialized” and irreplaceable. Only the allegation made in a press conference that the head of Aktor instructed P&C Development not to compete with the listed company, proves that it controls it.

• Truth one: “The dispute with the shareholders hurts the company.”
But apart from these things, some inaccuracies and many half lies, a truth was heard. “The dispute with the shareholders hurts the company.” This self-evident assumption was rightly made public, but it would be useful to address internally to the shareholder who has appointed the current management.

However, we must admit, for substantive and formal reasons, that we disagree with any attempt to create a scapegoat. Mr. Ch. Panagiotopoulos certainly has responsibilities as president of AKtor and Reds, but he was called upon to justify the actions of the Group’s Management, apologizing for choices and responsibilities that belong to others.”