EYDAP has taken an important step towards implementing its expansion plans, as most municipalities have given the green light to merging their local water supply and sewerage services with the listed company, according to sources cited by Euro2day.gr
The plan involves expanding EYDAP into 43 new areas by absorbing the corresponding water supply and sewerage bodies, as provided for under the new legal framework.
The plan was recently broadened to include 19 more areas, a move expected to increase the company’s customer base by about 20% overall.
As part of the process, municipalities were asked to say by the end of October whether they intended to join the new structure, in a voluntary process. Sources say the vast majority have given their initial approval.
Sources add that opposition to the plan persists in around 5%-10% of municipalities. The Municipality of Nafpaktia was the first to respond positively, with its municipal council approving the merger a few weeks ago.
The integration of the Municipal Water Supply and Sewerage Enterprises (DEYAs) is expected to be completed by 1 January 2028.
In a recent analyst conference call, the company’s chief executive, Harry Sachinis, said “the company is in the process of selecting an accounting firm to help value the assets associated with the forthcoming mergers”.
Edison’s assessment
In a recent report, Edison takes an in-depth look at EYDAP’s expansion plans, highlighting their potential positive impact on the share valuation, which it puts at 13.5-14.3 euros.
The report also stresses the importance of the new regulatory framework to the company’s outlook. The regulated asset base (RAB) methodology will take effect from 1 January 2026 and provides for an allowed return of 6.24%.
EYDAP has launched a €2.8 billion investment programme covering around 181 projects, while the RAB is estimated to grow from about €700 million in 2025 to €1.6 billion in 2035.
For 2025-2029, revenues are forecast to grow by 2.2% a year, adjusted EBITDA by about 9.2% and earnings per share (EPS) by about 2%, excluding any expansion of the company’s footprint.
“The expansion scenario implies an indicative increase in valuation of around €2.8 per share, taking our current valuation to about €14.2 per share and the potential valuation for 2029 to about €16.5 per share,” Edison adds.