PPC is expected to emerge from its share capital increase with strong international shareholders, as, in addition to the CVC fund, which will play the role of cornerstone investor that will acquire 10% stake, Blackrock and the European Bank for Reconstruction and Development (EBRD) are also seen taking a significant position in the power company.
The process of the share capital hike is entering the final stretch, as this week the prospectus is expected to be approved by the Hellenic Capital Market Commission, while on Friday PPC’s board of directors will meet and next Tuesday, November 2, the book of offers will open.
The final amount of the capital increase and the sale price will be locked in the board of directors next Friday. After the approvals, the official roadshows will start to present the capital drive to foreign investors.
All indications are that a much larger increase than the announced 750-million-euro threshold will eventually be chosen due to the strong investment interest shown. According to sources, the management of PPC is leaning towards raising 1.2 to 1.3 billion euros.
In this case, 140 to 150 million new shares will be issued, while the price of the new shares will be in the range of 8.5 to 9 euros, ie close to current levels.
Yesterday, the big agreement was announced with US investment fund CVC Capital, that will act as cornerstone investor, acquiring a 10% stake in PPC. CVC, having the role of the main investor, will hold onto its shares in PPC for at least six months.
According to sources, the underwriters are close to securing agreements with other big names who are also eyeing significant percentages. BlackRock and the European Bank for Reconstruction and Development (EBRD) are among those that have shown strong interest.
It is noted that the EBRD in recent years has escalated its investment initiatives in Greece, participating in many investment projects, such as bond issues from banks and companies, as well as capital increases.
With almost 1/3 of the capital increase, ie funds up to 395 million euros being covered by CVC Capital, all eyes are on who will buy the rest of the shares. The ceiling that has been placed by PPC for participating in the capital boost is up to 10%, so that more investment schemes can participate and a satisfactory dispersion of shares can be maintained.
Citi and Goldman Sachs, who are acting as coordinators of the international edition, have already made contacts with executives of large foreign investment portfolios with a long-term horizon. Among the investment schemes those interested are Fidelity, Apollo, Carmignac, Twenty Four AM, Bluecrest, Bell Rock Capital, Helikon Investments and Allianz Global Investors.
The push for more capital has been deemed necessary by the Greek company in order to move ahead with its new business plan, which envisages investments of 5.3 billion euros by the end of 2024 and 8.4 billion euros by 2026.