By Eleni Bota
With six major moves within 19 months, the Dutch of Reggeborgh managed to change the course of the ELLAKTOR Group, overcoming the problems of the past, putting it back on a strong growth trajectory.
After all, this was the goal of the new management of the Group when it took over the management of Ellaktor, starting with the decision for interim financing of 50 million euros, since the financial problems faced by the Group’s subsidiary, AKTOR, at that time were great.
This money was covered by Reggeborgh, in order to deal with urgent obligations of the construction group.
Then followed the increase of ELLAKTOR’s share capital, which was oversubscribed by 2.2 times, raising a total of 120.5 million euros.
Most of the funds raised were used to strengthen the AKTOR subsidiary.
A third important milestone for the Group was the elimination of operating losses in the construction sector (EBITDA -9.8 million in the corresponding period of 2021), as well as the increase in the backlog of signed contracts of AKTOR to 3 billion euros with the assumption important projects.
Next stop, the departure of the shipowners Baku – Kavmenakis and the entry of Motor Oil into the share capital of ELLAKTOR, which strengthened the Group even more. After all, the dispute that prevailed within the Group between Reggeborgh and the two former main shareholders, with lawsuits on both sides, out-of-court proceedings, etc., cost them both on a business and financial level.
As the company had stated, “The presence of strong shareholders in the Group, the internal calmness and the strengthening of the management is a sufficient and necessary condition for a better future in the company”.
This was followed by the increase to 46.15% of Reggeborgh in Ellaktor after the completion of the public offer, which showed the practical trust of the Dutch Group in the management, the ELLAKTOR group and the country.
The latest and particularly important move is the purchase of the Group’s 670 million euro bond loan.
The issue of the very expensive bond, which costs 45 million euros a year to Ellaktoras, had been in the sights of the group’s new administration from the first day.
The bond, amounting to 670 million euros, was issued in 2019 and was concluded with an interest rate of 6.4%, with a maturity date of 2024, while its issuance was pledged by Aktor Parachoresis, the parent company Ellaktor (so essentially the Branch of Wind power due to the absorption of EL.TECH.ANEMOS) and ELEKTOR, i.e. waste management.
The acceptance period for the bondholders will last until September 21, 2022, while the money for repaying the loan will come from the price that ELLAKTOR will collect for the acquisition of 75% of the new RES company that will be established with Motor Oil.