of Eleni Botas
The new three-year strategic plan is expected to be presented in the last quarter of 2022, by the board of directors of the ELLAKTOR Group, a key element of which will be its future capital structure.
As mentioned in her newsletter optional public offer for the acquisition of all ELLAKTOR shares by RB Ellaktor Holding BV, a subsidiary of Reggeborgh, Reggeborgh strongly believes in the dynamics of Ellactor’s various activities but the dynamics have been restrained by the weak financial structure of the company to date.
This is the reason that supports the company’s business strategy in terms of key areas of activity (except for the renewable energy sector which is to be transferred).
In particular, the strategy can be summarized as follows:
• Construction: Liberalization from certain non-profit international activities and focusing on markets where the Company has gained significant experience in project execution and maintains strong competitive positions and where the long-term picture is favorable.
• Concessions: Selective and targeted participation in new profitable projects and existing projects that will be reassigned.
• Real Estate Development: Expansion of the real estate sector to new projects (including existing development rights) in order to capitalize on the real estate recovery.
• Environment: Expansion of the environment sector to new projects due to the positive developments in the sector.
The sale of RES
It is estimated that the planned sale of 75% of the Renewable Energy Division to Motor Oil will significantly improve the Company’s financial position, including, as an indication, the possible early repayment of the bond, which will strengthen the financial and strategic flexibility of the Company. achieving its long-term goals.
Regarding the bond, ELLAKTOR will use the proceeds from the sale for the refinancing and repayment of the Company’s highly secured bonds amounting to 670 million euros expiring in 2024 and the financing of the development of key activities (co-financed), projects, the company’s.
In the event that the Holders of the Bonds demand their redemption, the parties estimate that the Company will receive interim financing (bridge facilities).
As the Company’s asset and financial structure will change significantly after the completion of the transfer of 75% of the Renewable Energy Division, Reggeborgh Invest BV and the Dutch company that submitted the public offer expect the Company’s Board of Directors to new three-year strategic plan aimed at creating long-term value for all Shareholders.
As the Company is expected to almost zero its debts after the planned sale of 75% of the Renewable Energy Sources department, the Offeror considers that especially the capital structure of AKTOR CONCESSIONS SA, of ELECTOR SA. and REDS REAL ESTATE DEVELOPMENT SA may need to be reviewed, while the existing plans for AKTOR SA. are not expected to change significantly.
The exercise of option
Motor Oil has a three-year put option to sell at the reggeborgh acquisition price 52 million Shares starting at 06.05. 2022.
The exercise period of this sale option is 12 months and starts on 06.05.2024 and ends on 06.05.2025.