What does the deal with Ellactor mean for MOH?

By Harry Floudopoulos

The deal that radically changes the map of the Greek energy market can be characterized as Motor Oil’s agreement to enter the share capital of ELLAKTOR. Of course, the substance for the Motor Oil group is in the part of the agreement that concerns the RES portfolio of ELLAKTOR, the second largest in size in the Greek market, which passes to the control of the listed company. In this way, Motor Oil automatically becomes the number 2 in the Greek green energy market.

In particular, MOH, which so far has 279MW of projects in operation, 84 MW under construction, 650 MW in additional production licenses, adds to its portfolio a portfolio of wind, photovoltaic and energy storage systems of 493 MW capacity in operation and another series of projects under construction or development with a total capacity of more than 1.6GW. With the new units, MOH becomes one of the largest producers of energy from RES with projects in operation with a total capacity of up to 800MW and a total of 2.3 GW portfolio under construction and development.

As for the structure of the deal, as it became known, Motor Oil and Reggeborgh have agreed on the establishment of a new company of the Ellactor Group, which will include the existing portfolio of renewable energy sources of the Ellactor Group. The Agreement includes all projects that are already in operation, and those that are under development. Motor Oil Group will acquire 75% of the shares of the new company, while the remaining 25% will remain with Ellactor Group. The value of the enterprise for the transaction (enterprise value) was agreed at 1 billion. euro.

The part of the agreement for RES is the most important target of the deal that was made for the shareholding of the Motor Oil group in the ELLAKTOR group. Specifically, the MOH group proceeds with the acquisition of 29.87% of the shares of the ELLAKTOR group, at a price of 1.75 euros per share and a total price of 182 million euros.

Always according to what became known, in the context of the Agreement:

-Reggeborgh maintains its stake in the Group with 106 million shares, and Motor Oil acquires 104 million shares.

-Motor Oil does not intend to buy further shares in any public offering.

-Motor Oil maintains minority rights in the Ellactor Group having the ability to support the general business plan and management. In two years from today Motor Oil has the right to reduce its share of shares by 52 million shares, to the acquisition price.

That is, essentially MOH enters as a minority shareholder in the share capital of ELLAKTOR, with the option in fact to reduce its participation in the acquisition price by half. This shows that the strategic goal of MOH in terms of the overall agreement, concerned the part of the deal for RES, which is part of the group’s strategy for the shift to green energy and the improvement of the overall environmental footprint.