By Harry Floudopoulos
With a firepower that can exceed 4 billion euros, funds that will be directed to the largest investment program in its history, PPC enters strengthened the next day after the historic AMK. However, apart from the investments that will transform the group in the direction of the green energy transition, the company is now entering the new era with a new wider and multi-collection shareholder structure, with the State now limited to the statutory minority. In any case, the success of AMK exceeded all expectations, raising for PPC funds of 1.35 billion euros in the maximum range of the sale price of 9 euros, with bids exceeding 4 billion euros. The elite of the world market is now entering the PPC share register. Indicatively in CVC participated and enter with remarkable percentages CVC, Oak Hill, EBRD, BlackRock, Fidelity, Wellington, Helikon, Covalis, GAMA, Discovery, Zimmer, Kayne Anderson, T Rowe, Millennium Partners, Hengistbury Inv. Partners, Light Sky, JNE Partners, Ghisallo Capital, Fiera Capital, Schonfeld Strategic Advisors.
According to the statements of the management, AMK will contribute to the financing of the updated Strategic Plan of the company and will allow the company to increase its investment program to 5.3 billion euros in the next 3 years and to 8.4 billion euros by in 2026, with a target of 7.2 GW of installed RES capacity (including Hydroelectric Stations) by 2024 and 9.1 GW by 2026, which in turn is expected to contribute to the achievement of EBITDA targets of 1.7 billion in 2026.
Most of the investments are expected to be implemented within the first three years (5.3 billion euros by 2024) and will concern 2.9 billion in RES, 1 billion in distribution (HEDNO) 1.4 billion other investments related to RES, such as pump storage, conventional electricity generation, digitization, electrical mobility, etc. At the same time, PPC in its updated strategic plan is expected to proceed with the distribution of dividends of 100 million euros by 2026.
The total capital needs of 5.4 billion euros will be covered by 1.3 billion from the capital increase, 1.3 billion from borrowing, 1.3 billion from the sale of HEDNO and the rest from operating cash flows.
At the same time, the funds raised will be expected to finance the PPC expansion plan in neighboring countries. Information wants this plan of international expansion of the company to concern mainly the two countries of the European Union in the Balkans, namely Bulgaria and Romania. The company is said to be scanning the two countries and studying various proposals for acquisitions and partnerships, which will put an end to the hitherto failed attempts of extroversion of the company.
The omissions of AMK
The structure of the capital increase is also interesting, as 90% of the investors who participated are long investors, ie investment funds with a long-term strategy. 87% come from abroad and 13% from Greece, while 20% are existing shareholders, when 80% are new investors. Finally, the amount to be allocated, excluding the amounts covered by the Superfund, the cornerstone investor, ie CVC, and the EBRD, was exceeded 5 times.
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Source From: Capital
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