After eight months, the process of selling a 49% stake in HEDNO has been completed at a price of 2.1 billion euros and the buyer is Spear WTE Investments, which belongs to Australia’s Macquarie Infrastructure & Real Assets Group.
It should be noted that this is the largest privatization that has taken place in Greece, while with the amount that PPC will receive, it will proceed with a significant reduction of its debt (Net Debt / EBITDA) below 3x, while with the rest of the money financing its major investment plan in RES, which will lead even faster to a reduction from imported and polluting forms of energy.
Based on PPC’s announcement, the offer amounted to 2.1 billion euros for 49% of the value of HEDNO (Enterprise Value), including the corresponding (pro-rata) net debt of 0.8 billion euros and refers to a valuation of which amounts to 151% of the Regulated Asset Base.
The tender had attracted a lot of interest from international groups from the beginning, as nine investors had submitted bids and four of them finally submitted binding bids, with their total managed funds reaching one billion euros.
The teaming up of HEDNO with a large company such as Spear WTE Investments is expected to develop an extensive program to modernize and digitize its network and offer better and higher quality services to all citizens.
Based in Sydney, Macquarie is a global financial services group operating in 32 markets in asset management, retail and business banking, wealth management, leasing and asset financing, market access, commodity trading, renewables development, specialist advisory, capital raising and principal investment.
It has a diversity of operations that have contributed to a 52-year record of unbroken profitability. Last month, it finalised a deal with Italy's Enel to acquire a 40 per cent equity interest in the Open Fiber network for 2.12 billion euros.
PPC’s announcement said:
PPC S.A., following the announcement dated 3.9.2021, informs that, the bidding process for the sale of 49% of HEDNO S.A. share capital has been completed.
Spear WTE Investments Sarl, member of the Macquarie Infrastructure and Real Assets Group (MIRA), was the highest bidder with an offer that values 49% of HEDNO's Enterprise Value at € 2,116 mn (including pro-rata net debt of € 804 mn).
The offer reflects a valuation to RAB of 151%.
The final decision will be made by the competent corporate bodies of PPC S.A..