GEK Terna states in an announcement that recently it has received interest from investors for its assets (including its subsidiaries), however it is noted that no decision has been taken to conclude any relevant transaction.
As noted in the relevant announcement, among the other issues that the company considers before making a relevant decision is whether the liquidity that would result from such a disposition would serve the identification and exploitation of new investment opportunities.
At the same time, it is noted that the company has convened the meetings of the bond lenders.
The announcement of GEK Terna in detail:
Following a relevant question of the Hellenic Capital Market Commission, GEK TERNA SOCIETE ANONYME HOLDINGS, REAL ESTATE, CONSTRUCTIONS (the “Company”) informs the investing public about the following:
The Company on an ongoing basis seeks the optimal management of its assets with the basic criterion of maximizing the value of the Company. During the last period, the Company has been the recipient of investors’ interest in its assets (including its subsidiaries), without having made a decision to conclude any relevant transaction. Among other issues to consider before making a decision is whether the liquidity that would result from such a disposition would serve to identify and exploit new investment opportunities.
In this context, the Company has convened the meetings of the bond lenders of the common bond loan amounting to Euro 120,000,000 (the “Code 2018”) issued by the Company under the 22.03.2018 Common Bond Loan Program up to Euro 120,000,000 and Agreement for the Appointment of a Representative of the Bondholders (the “KOD Program 2018”) and the joint bond loan amounting to EUR 500,000,000 (the “KOD 2020” and together with the KOD 2018, the “KOD”), issued by the Company by 19.06.2020 Program for the Issuance of a Joint Bond Loan up to EUR 500,000,000 and a Contract for the Appointment of a Representative of the Bondholders (the “KOD 2020 Program” and jointly with the KOD 2018 Program, the “KOD Programs”). It is noted that according to the COD Programs the following assets of the Company’s group are characterized as “Excluded Assets” and substantial restrictions are provided on the use of the proceeds that will result from their sale: the group’s holdings in TERNA SA, in TERNA ENERGIAKI SA and in KEKROPS SA, seven plots of the subsidiary ΒΙ.ΠΑ. THESSALONIKIS SA at Kato Gefyra in the municipality of Chalkidona, Thessaloniki, a plot of the subsidiary MONASTIRIOU TECHNIKI ANAPTYXIAKI SA in the municipal unit of Menemeni of the municipality of Ampelokipi-Menemeni of Thessaloniki, a plot of the Company after the above buildings in the “Old” district in Volos, Magnesia, as well as the plot after the office buildings of the Company on Mesogeion Ave. 85, in Ampelokipi, Attica, after the lifting of the existing weights.
The purpose of these meetings (as it appears from the relevant invitations) is to obtain the consent of the bondholders of KOD, for the exceptional use of the net income from the sale of only one of the Excluded Assets in the manner provided for all the others. assets of the Company, namely: (i) for the partial or total repayment or prepayment (a) of any debt of non-reduced classification of the Company or Subsidiary (and in case of borrowing a revolving credit with the final reduction of the corresponding commitment) , or (b) liabilities of the Company or Subsidiaries secured by Weight, to be retained in the Group throughout the period of KOD 2018 and KOD 2020, respectively, (iii) for the acquisition with maximum consideration the fair market value: (a) shares in a company operating in the Company and / or Subsidiaries, and / or (b) additional holdings in Subsidiaries that the Company does not own wholly (100%), directly or indirectly, (iv for the financing of construction, concession or partnership projects undertaken by the Company, Subsidiary, joint venture or other legal entity in which the Company or Subsidiary participates, Subsidiary activity, in which case the Subsidiary shall use the funds for one or more of the uses referred to in (i) to (iv) above, or to cover the Subsidiary’s losses, and (vi) any combination of above.