Fifty funds want to buy PPC

Tomorrow is considered a milestone in the 71-year course of PPC, when the extraordinary general meeting of its shareholders takes place.

They are called upon to decide on the management’s proposal to increase the share capital by 750 million euros with the sale of new shares. This move will pave the way for more investors to enter and reduce the public interest rate to 34%.

At the same time, sources told OT.gr about the huge interest shown by foreign institutional investors in order to participate in the process.

According to information from OT.gr, the president and CEO George Stassis and the rest of the management in the last 20 days, since the announcement of the increase of the company’s share capital, have made an informal roadshow to at least 50 foreign funds and investment houses.

The same sources want the vast majority, 48, expressing their intention to participate in the process.

Sources from financial companies say that among the names of institutional investors are CVC Capital, Blackrock, EBRD, Fidelity, Apollo, Carmignac, Twenty Four AM, Bluecrest and Pictet, Bell Rock Capital, Allianz Global Investors, Sephora Investment Advisors Capital Management, Cleargate Capital, Zenon Investments.

Market participants also report to OT.gr that, although PPC seeks to raise 750 million euros, nevertheless the bids it will receive will correspond to the amount of around 1.5 to 2 billion euros. If these estimates are confirmed, the same executives believe that the administration, and once the conditions are favorable, will seize the opportunity to raise additional funds.

The general assembly

The countdown for PPC’s big venture, as mentioned above, starts tomorrow, October 19, the day when the general meeting of its shareholders will decide on the increase of the share capital. This move marks a new era in its 71-year history with the public reducing its participation below the majority threshold of 51%. It will drop to 34%, in the key minority percentage (blocking minority).

It is reminded that today 34% belongs to the Superfund and 17% to the HRADF, while the remaining percentage of the shares is distributed to shareholders. With its announcement, the Superfund has hinted that it will not increase the percentage of its participation in the share capital of the listed company.

According to what is claimed in the government, the next day with the new shareholder composition, the Greek state will control the management of the company and will have the right to make decisions on strategically important choices.

The next steps of the share capital increase and if the general meeting turns on the “green” light is the opening of the book of offers at the end of the month as well as the offering price of the new shares. Trading on the Athens Stock Exchange is expected to begin in early November.

The investment plan

The increase of the share capital will contribute to the financing of the updated strategic plan of the Company and will allow it to increase its investment program to 5.3 billion euros in the next three years and to 8.4 billion euros by 2026, aiming at 7.2 GW (Gigawatts) of installed capacity of Renewable Energy Sources (including Hydroelectric Power Stations) by 2024 and 9.1 GW by 2026. These investments, according to the PPC management will bring operating profitability (EBITDA) of 1, 7 billion euros in 2026.

The company will explore additional opportunities in new activities, in areas where there are significant untapped prospects in the Greek market, such as electricity and telecommunications.

In addition, the share capital increase will allow PPC to explore its “strictly selective and sensible expansion into neighboring markets in South East Europe, in order to take advantage of growth opportunities in the region and make the most of its share of electricity trading role in promoting the energy transition, not only in Greece but also in the wider region “, as noted in their announcement addressed to the shareholders.

Acquisitions in the Balkans

According to its updated investment plan, the public company aims to acquire a RES portfolio in neighboring Romania and Bulgaria. By 2024 it wants to add about 700 MW from these markets. It is not ruled out, the information says, that these moves will be made with partners in RES investment projects, such as German firm RWE.

The reason for the expansion is also related to the need to reduce energy costs in Greece. Wholesale prices in the Balkans are around 20% lower. With the acquisition of RES systems, PPC will be able to bring cheaper quantities of electricity to Greece by dropping prices for its customers.