Why did the PPC, DEPA, Kopelouzo partnership take place – Context: The… beauty and the blind board – Ioannou's refinance

KAIL: The decision of the judicial council in Belgium, to continue her pre-trial detention, even though her partner also remains in pre-trial detention, so both parents of her little girl will be out of circulation (instead of her exit with a “bracelet”), shows two things, in the opinion of the column: First, that the competent judges are not at all convinced by her claims of innocence , but also that she was considered a suspected escapee. And secondly, that given the “flood” that the case has created, the authorities choose to follow a strict line towards those involved.

AVRAMOPOULOS: The receipt of a fee of 60,000 euros by the disputed MKO which was not in the EU transparency register, although “legal”, seems to definitively put gravestone to ambitions for some European position. With these conditions, however, it seems very difficult for him to participate in… local ballot, while bigger troubles are not excluded, as some media abroad seem to have him “on the hook”.

ENERGY: The FSRU in Alexandroupoli was the catalyst for the deal announced yesterday PPC, DEPA and Kopelouzos.
Their partnership for the construction of an 840 MW natural gas plant in Alexandroupolis benefits all three partners.

The DEH, which will include in its portfolio of thermal units a new state-of-the-art, to replace the old unit it has in Komotini and retires. The information in the column says that it does not last beyond 2027. Despite the fact that PPC had secured from March 2021 a license for a new gas plant in Komotini, next to the old one, it abandoned this plan. Obviously, it is one thing to share the cost of such an investment and another to shoulder it all alone. In addition, the new unit will have access to gas from the FSRU, very close to it.

The DEPA, because it enters for the first time in power generation and will also serve its “retail” needs, through its subsidiary, Natural Gas. urgently a large consumer of natural gas for the FSRU it will build in Alexandroupoli. The gas storage that will accompany the project is sufficient for 170,000 cubic meters, i.e. a cargo of LNG that will be carried by a ship. To receive the next ship the FSRU must have emptied the previous cargo from the holds. Of course, there were thoughts to expand these spaces, but apparently the excessive cost for the investment led to the abandonment of the thought. Now with DEH as a big consumer the problem is solved.

Not bad at all…

SYMBOL: The Symbol portfolio, which was bought by the Centerbridge-Elliott consortium in 2019, from Ethniki, is for sale either in its entirety or in two parts.

The portfolio then included 12,800 non-performing loans, with collateral on approximately 7,900 properties throughout Greece. We hear that the perimeter was not reduced appreciably as during the three years, there were several months with a ban on foreclosures and auctions due to the pandemic.

DONKEY HOTELS-IOANNOU: A loan of 59.97 million euros was received by the parent company of the Donkey Hotels group of the Ioannou family from the National Bank. Part of (47.17 million) was directed to repayment of existing borrowing (Piraeus). The rest for financing investments and working capital needs.

Donkey operated, this summer, two new hotel units in Santorini, with a capacity of 121 rooms .

CONTEXT: With a valuation of just over 6x EBITDA and at a fraction of the value of its sales (which will be 436-437 million euros this year) the public offer is made to export the company from the AX, as it produces a total valuation for 100%, approximately 101 million euros.

All this with 102 million equity, 39 million euros in cash and about 27 million euros in net cash (that is, minus its limited borrowing), based on 9-month data.

However this price is much higher than what the company has written on the board, not just in the last six months but from September 2021 (a while back) and earlier since the time of… 2018, when it had seen prices in the 4.50-4 range again, 70 euros.

With this data, what should be the “actual valuation” is a bit reminiscent of “beauty is in the eye of the one who sees it”.

Because how can you accuse the main shareholder of not giving “something more”, when for years the board, which is supposed (to remind the well-known… wisdoms ) is rarely wrong, he wrote much less?

What is certain, in the column’s humble opinion, is that the company is valued in the public offering with the data of an extremely difficult 10 years , memoranda and in the face of a pandemic, sudden war and inflation, so in a more normal period an upside will have it.

The issue is also what the Gerardos family will do after exiting. Will she continue… alone? Or will he find a strategic investor? Besides, it won’t be the first time that a listed company comes out and then… sells bulls.


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