Greek companies attracted a total of 12 billion euros in capital through Acquisitions and Mergers, corporate bond issues and share capital increases and privatizations in 2021. Drawing impetus from the economic recovery, domestic companies still recorded a year-over-year base. higher levels in 2022.
According to the relevant study of PwC Greece, in 2021 76 acquisitions and mergers took place. Their total value amounted to 4.3 billion euros, recording an increase of 200 million euros compared to 2020. In addition, the number of transactions was 29% higher than the previous year, but the average value of transactions decreased by EUR 13 million.
In total, including bond issues of 4.2 billion euros but also share capital increases and non-performing loan transactions, Greek companies attracted capital that reached 9 billion euros in 2021.
The business interest, according to the study, was focused on the Telecommunications, Media and Technology (TMT) sector, as the relevant transactions correspond to 26.8% of the value. According to the PwC study, these innovation transactions had a fairly high price, as a result of their increased value, due to the digital needs that exist in the post-pandemic era.
The second most dominant was the Food and Beverage sector with transactions corresponding to 15.5% of the value, followed by the Financial Services (15.2%) and the Services (14%).
Corporate bond issues were also strong, with a total value of 4.22 million euros through 14 issues in 2021, compared to 1.73 billion euros and 6 bond issues in 2020, indicating the gradual recovery of the economy from the pandemic.
The value of privatizations was correspondingly increased, as, according to the relevant study, in 2021 the gradual recovery of the economy, generated significant revenues from the completion of privatizations that were delayed due to the pandemic crisis in 2020. In total, revenues from privatizations amounted to 3 , 02 billion euros. In 2021, among other things, the first installment for the sale of Elliniko was disbursed, amounting to 300 million euros out of 915 million euros of the total price and the contract for the sale of DEPA Infrastructure to Italgas was signed for a total price of 733 million euros. In 2022, the concession of 49% of HEDNO to Macquarie Asset Management is expected to be completed, for 1.3 billion euros.
At the same time, particular mobility was observed last year in terms of securitization of non-performing portfolios by systemic banks. The value of the relevant transactions amounted to 12.1 billion euros, surpassing all previous ones. Thus, aided by the gradual recovery of the domestic and international economy from the effects of the pandemic, financial institutions completed the sale of portfolios with a total gross book value of 38.2 billion euros.
Regarding 2022, the PwC study predicts that the acquisitions and mergers that have already been agreed and will be completed within the year can exceed 6.3 billion euros, with an additional 2.3 billion euros coming from privatizations. Thus, the total amount is expected to exceed the record amount of 8.6 billion euros.
Kyriakos Andreou, Partner, Advisory Leader, said: “2021 was a particularly dynamic year for acquisitions and mergers, raising the bar particularly high compared to 2020. The economic recovery gave impetus to new agreements and allowed the completion of those “They were ‘frozen’ due to a pandemic. At the same time, the large number of transactions and privatizations that were launched in 2021 and are expected to be completed this year has laid the foundations for 2022 to be a record year despite the negative international situation.”
Thanasis Panopoulos, Partner and head of the Deals department of PwC Greece, commented: “In 2021, a year of intense recovery after the pandemic recession, a fact that was reflected in the market of R & D that recorded a significant increase, both in number and total value of transactions In fact, a series of agreements that had been “frozen” in recent years due to the pandemic were implemented in 2021, while at the same time the foundations were laid for a number of future agreements that are expected to take place this year. € 12.1 billion, completely changing the map of both financial institutions and services.This dynamic, as well as the agreements already concluded and planned to be implemented in 2022, lay the foundations for a particularly dynamic year, in stubbornness of the negative international situation “.
George Makripidis, Partner and Head of Corporate Finance of PwC Greece, noted: “2021 was characterized by strong dynamics in the market as a whole with particular emphasis on telecommunications, media and technology, as well as food and beverages that together over 40% of the total value of transactions.The privatization proceeds were particularly high, which was more than any other year in the last decade, due to significant disbursements
which took place in 2021. Regarding 2022, the impact of inflationary pressures and the intensity of the energy crisis are expected to be decisive factors. However, the momentum that developed in 2021 may overcome the obstacles, leading to another record year in terms of R&D. ”
You can find the complete study here.
Source: Capital
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