After the deal with Motor Oil for the acquisition of Anemos goes ahead, Ellaktor will attempt to use the money to repay part or all of the 670 million euros bond, at the high interest rate of 6.4%. This particular bond costs the group 43 million euros in annual interest.
This was stressed in the teleconference with analysts and bondholders on the occasion of the first quarter results, by Ellaktor CEO Efthimios Bouloutas. As Bouloutas pointed out, due diligence by Motor Oil is currently underway.
According to the terms of the bond, if for example the deal is completed in September, Ellaktor has the right to propose the redemption of the bond at 103,188, by December 15, 2022. From December 16, 2022 to December 15, 2023, the price falls to 101.6 and from December 16, 2023 until the maturity of the bond on December 25, 2024, the redemption price drops to 100.
The public offer
Bouloutas also referred to the procedure of the public offer submitted by Reggeborgh for 100% of Ellaktor at a price of 1.75 euros per share, saying that the approval of the prospectus is expected next week.
The public offer is for the 70% that Reggeborgh does not own, while Motor Oil has stated that it will not transfer its own percentage (30%).
The public offer is related to the bond, as in the - not very likely - case that Reggeborgh acquires 51%, it will be obliged to submit a proposal to buy out the bond by offering bondholders a price of 101.
Asked whether the performance of the construction that reached a break even point in the first quarter will continue, Bouloutas replied that the environment is unstable but claimed that the new contracts signed by Aktor have better profit margins than in the past.
Regarding Attiki Odos, when asked about the percentage of Ellaktor in the consortium that claims the tender along with Avax and Adrian, Bouloutas did not reveal the percentages of the partners.
In the first quarter of 2022, Ellaktor Group returned to net profitability after 11 loss-making quarters, and the construction sector managed to show marginally positive EBITDA.
The group recorded a 14% increase in turnover, which amounted to 220.2 million euros. EBITDA (comparable) reached 67.3 million euros, recording an increase of +65%. Operating profits more than doubled to 30.9 million euros, and net profit after tax amounted to 14 million euros, while losses reached 9.1 million euros, in the corresponding period of 2021.