AKTOR is proceeding with a new capital injection of one billion with the aim of financing an ambitious investment plan that will strengthen the group’s position in concessions—PPPs, Renewable Energy Sources (RES), and LNG—both in Greece and abroad.With its sights clearly set on the U.S., the plan calls for attracting strong investors to the group’s shareholder base as it prepares a €3 billion investment plan for the next five years.
Two-Pronged Approach
The capital increase will be implemented in two stages, the first of which will be a €650 million share capital increase.
In a process likely to begin on July 21, the capital increase will be carried out through the waiver of existing shareholders’ rights, with priority given to minority shareholders in the allocation of shares.
It should be noted that the entire amount of the share capital increase is “fully underwritten” by Bank of America, UBS, and Goldman Sachs.
“We want the strongest possible shareholders. We don’t want to attract speculators. We’re more interested in shareholders who buy into the equity story. Therefore, this will be one of the key selection criteria when we have the luxury of significant oversubscription, allowing us to choose our shareholders,” said Alexandros Exarchou, Chairman and CEO of the AKTOR Group, at a press conference where he presented the company’s plans.
At the same time, Aktor will proceed with a bond issuance of 300 million euros, which will be underwritten by UBS through a private placement. Although no exact date was given for the bond issuance, the CEO expressed hope that both processes would be completed by the end of the summer.
It should be noted that the annual shareholders’ meeting is scheduled for July 16.
The Plan
Of the €3 billion investment plan, 40% of the funds will go toward concessions, another 40% toward renewable energy sources, and 10% toward LNG.
“In the concessions sector, not only to cover the equity requirements of our existing concessions— the BOAK and others, but also so that we can develop the concessions sector primarily in Romania, which we believe will become a key commercial objective for our business plan. In addition, a significant portion of the investments will be spent on vertical integration of the Group’s energy sector—in renewable energy sources, of course— including through the acquisition of battery manufacturers abroad, since at present we do not view the acquisition of battery manufacturers in Greece as an immediate priority,” the CEO emphasized.
When asked about the group’s plans in the electricity supply sector, he noted that part of the 3-billion-euro investment program is earmarked for the acquisition of a retail electricity supplier, though he did not provide further details.
At the same time, he emphasized that the group’s plans also include an investment in a floating liquefied natural gas (LNG) terminal (FSRU).
Shareholders
Everyone’s attention is focused on the new shareholder structure that will take shape following the capital increase. It should be noted that rumors have been circulating in the market for some time that the U.S. government-backed fund DFC intended to acquire a stake in Aktor, a fact that has not been officially confirmed.
Of course, the issuance of new shares presents an opportunity for new, strong foreign investors to enter the market, given that 80% of the new shares will be offered to foreign investors, with the remaining 20% earmarked for domestic investors.
Currently, AKTOR’s three main shareholders are Winex Investments (with a 39.1% stake), Castellano Properties (18.5%), and Blue Silk (15.6%), with the remaining 26.6% in free float.
Winex Investments (in which Mr. Exarchou holds a stake alongside Dimitris Bakou and Yiannis Kaimenakis) and Castellano Properties have expressed their interest in participating in the €300 million share capital increase
“The major shareholders (namely Winex Investments and Castellano Properties) will reduce their stake, though, if you will, their combined share will not fall below 51%,” noted Mr. Exarchou.
The Goals and Business Plan
As for the medium-term goals, the company is targeting revenue of 2.3 to 2.8 billion euros, with adjusted EBITDA estimated at between 375 and 425 million euros and net leverage ranging from 3.8x to 4.2x.
Looking at the long term, the targets are rising, with revenue expected to range from 4.5 to 5 billion euros and adjusted EBITDA ranging between 600 and 700 million euros, while net leverage is projected to decrease to between 3.5x and 4.0x.
The final—and perhaps most important—milestone of the strategic plan is the year 2031, by which time AKTOR aims to achieve an EBITDA of 650 million euros.
The New Role of Construction
It is interesting to note that the role of construction appears to be changing for the group. Of the total investment program of 3 billion euros, 300 million will be allocated to the group’s construction activities.
According to the CEO, the main objective of the business plan is to reduce the company’s dependence on construction.
“This will be achieved without reducing either the backlog—which we want to keep high—or, of course, the company’s revenue from construction. We will simply substantially increase cash flows from our other activities, namely energy, LNG, and concessions,” he added.