Her case is similar to the “chronicle of predicted death.” Actorconstruction “hand” of the Ellactor group, which was eventually sold intracata move that exposes the structural problems of a company that has meddled for more than two decades in construction industry, being the leading force and regulator of development. The “fall of the construction giant” began in the middle of the previous decade, when continuous losses began to accumulate from a catastrophic, as practice showed, expansion into markets outside of Greece.

By 2020, projects in the Balkans and the Middle East had accumulated losses of 500 million euros, followed by additional losses of more than 100 million euros due to equally disastrous solar park construction activity in Australia. After the change of the new leadership, with their “blessings”. Regeborg Invest, who in the meantime had begun to buy shares in the company, using the stake of Mr. Leonidas Bombola, there were expectations of a recovery. Capital increase of 120 million euros, subsequent agreement to sell 75% of Anemos and resolution of the shareholder conflict (between Reggeborg and the group of investors who are now buying Actor, i.e. Mr. Baku, Kaimenakis and Exarchu), but also a steady improvement in results The actors were moves in the right direction. However, as it turned out, they were not enough, since the company still could not become viable without needing constant liquidity injections from other companies in the group, mainly from Aktor Concessions. This is also evident from the nature of the agreement with Intrakat, as out of the EUR 214 million, EUR 114 million covers intra-group loan obligations (repayment will be made gradually over 19 months).

Essentially, Actor was still unable to generate the required capital flows, so constant injections from the parent company were not needed. This may have been aided by the fact that the company has now lost significant management capacity due to the protracted crisis and instability, and by the fact that Reggeborg did not want to transfer to Greece the know-how he had acquired in the Netherlands and elsewhere. It is recalled that the fund in question manages the personal estate of the Wessels family, which controls the eponymous group, one of the largest construction companies in the wider region of Northwest Europe.

And Aktor’s €214 million valuation, at which Intrakat itself was valued when it was handed over to the investment group of Mr. Yiannis Kaimenakis, Dimitris Bakos and Alexandros Exarchu last July, also demonstrates the strong desire of Reggeborgh Invest, its main shareholder Ellaktor, to cooperate with Motor Oil of the Vardinogiannis group to exit the construction as “bloodless” as possible.

Aktor has a portfolio of projects of 2.8 billion euros, while the corresponding portfolio of Intrakat, when it was acquired last year, was about 1 billion euros, that is, almost three times less. Today, following the completion of the merger of the two companies, which is expected to take place no later than the fourth quarter of 2023, the new Intrakat will become the second largest company in the industry with a total outstanding balance of €4.1 billion (€1.3 billion for Intrakat and 2.8 billion euros for Aktor) and increased interest in a number of joint ventures that apply for new projects (where there was a joint structure of Aktor and Intrakat).

At the same time, Intrakat is protecting a very important technical facility through a parallel Aktor Concessions agreement. In particular, in all PPP contracts and concessions entered into or to be entered into in the future by a subsidiary of the Ellactor group, Intrakat will undertake the construction of the facility. In fact, it will be Aktor Perachores’ strategic construction partner. “The acquisition of Aktor is fully in line with the development plan of Intrakat’s new management, which envisages taking a leading role in the sector, as well as our further expansion in the South East Europe region,” said Mr. Alexandros Exarchu, Vice President. and Managing Director of Intrakat Consultant.

The latter is expected to be the “steam engine” of the Ellactor group in terms of revenue, as future cash flows from existing projects are estimated to exceed 1.3 billion euros over the next few years. These funds, combined with proceeds from the sale of Aktor, as well as savings generated by the fact that the group’s construction sector will no longer need liquidity, will strengthen the group’s financial position. Management expects to increase profit margins, increase operating and net profitability without the “encumbrance” that “Actor” has become in recent years.

The listed company’s management states in its respective statement that “the group will focus its activities on the wider infrastructure sector in Greece, increasing investments in concessions and PPP projects, waste management and real estate development.” This needs to be proven now, as the market is already looking forward to the next sale of the group, whether that be the case, for example. Elektor (a subsidiary of waste management) or even Aktor Concessions itself, if not immediately, then in the next 12 months for sure.