The proposed dual deal between AKTOR and Motor Oil appears to signal the prospect of a strategic alliance between two major business groups, one that encompasses much more than mere acquisitions.
From the circular economy, waste management, and PPP projects for waste treatment, to the joint development of the FSRU for “Diorygas,” a subsidiary of MOI, discussions between the two publicly traded companies point to a deep-rooted collaboration.
If discussions regarding the project in Agioi Theodoroi, Corinth, are successful and AKTOR contributes capital and a long-term capacity commitment to the project, Greece’s second floating LNG storage and regasification terminal will likely get off the ground.
If, similarly, the exclusive negotiations that began yesterday between the two sides regarding AKTOR’s acquisition of 75% of the companies “Ilector” and “Thalis” result in an agreement, the latter will make a strong entry into waste management, the sector where the next cycle of major PPP projects is expected to take off. In this venture, it will have Motor Oil as a partner, holding a 25% stake, at least in the initial phase.
The range of potential partnerships on the table is quite broad, and once the initial agreements are finalized, no one can rule out expansion into other sectors (e.g., renewable energy), as industry insiders note.
Regarding timelines, relevant sources estimate that talks on the circular economy will be concluded by July, while discussions on the FSRU are expected to be finalized by the end of the summer, a fact that also indicates the talks were at an advanced stage.
What Does AKTOR Stand to Gain?
When asked what AKTOR stands to gain from a potential acquisition of “Ilektor” and “Thalis,” the answer is quite obvious.
Both because it significantly strengthens its position in environmental infrastructure—an area it is increasingly prioritizing, as indicated by the MoU signed months ago with the French company SUEZ to jointly bid on waste management, the circular economy, and water resources, and because at this stage it has an ever-greater need for stable revenue.
The recurring cash flows from construction projects are exactly what it needs to finance (along with the 950 million from the capital increase and bond issuance) its ambitious energy projects.
The Price and Scenarios
Of course, everything will depend on the negotiations now underway regarding issues such as management, pricing, and every other detail. It is worth noting that two years ago (May 2024), when MOI acquired 94.44% of “Hektor” from the Ellaktor Group, the company’s total valuation stood at 121 million euros. Some sources put the current valuation at close to 200 million euros.
A closer look at HELECTOR’s profile reveals that it currently operates 7 municipal solid waste treatment facilities in Greece and Cyprus, two hazardous clinical waste management facilities, and four energy production facilities that utilize biogas released from sanitary landfills, with a total installed capacity of over 33 MW.
At the same time, it has signed new contracts for the construction of waste treatment plants in Agrinio; the turnkey construction of the Public Power Corporation’s (PPC) high-efficiency combined heat and power (CHP) plant at the Kardia Power Plant; the waste treatment and management project on Andros, environmental projects in Crete and Germany, among others.
Similarly, “Thalis” operates in a complementary capacity to the former. With a presence in Crete and Northern Greece, it is active in the field of energy production from waste, while also offering remediation and management services for contaminated soil. As far as its value is concerned, it had assets of 84 million euros in 2024.
What Does Motor Oil Stand to Gain?
Although the question is more complex—given that the circular economy has been and remains high on the Vardinoyannis Group’s agenda—sources at MOI note that the company is not exiting the sector. They clarify that waste treatment facilities—such as those operated by “Ilector” and “Thalis”—have greater synergies with construction (AKTOR) and fewer with energy.
Above all, however, they emphasize that MOI has made the strategic decision to focus on sectors of the circular economy that are more aligned with the group’s core business.
“We are not moving away from the circular economy. Our flagship is LPC, a purely export-oriented lubricants company operating in approximately 20 countries, while the picture is rounded out by Verd (Green Oil) and the recently acquired 60% stake in ENACT, which has expertise in waste collection, transportation, and storage. Furthermore, we hold 25% stakes in HELECTOR and Thalis,” the same sources comment.
Regarding the “Dioryga Gas” floating terminal, the group’s need to find a partner had been clear for some time. Speaking on the sidelines of the recent General Meeting, management sources had noted that the final investment decision “depends” on the signing of long-term capacity commitment contracts.
“We are waiting to see whether the project will become viable,” a high-ranking source within the group had said, linking the issue not to securing financial backing, but rather to a potential partnership with an investor.
This, in turn, means that to the extent that AKTOR’s efforts are successful and it achieves its target of 4.5 bcm of contracted LNG volumes by the end of the year, the conditions will be in place to secure capacity on the FSRU, which is the key requirement for making an investment of around 400 million euros viable.