Large construction groups have recently been competing to secure the necessary liquidity for their participation in concession projects and PPP contracts that have been announced in the past two years, as well as those to be announced in the next two years. coming months. In this context, steps are being taken to completely restructure the groups, with a focus on the sale of highly profitable activities in the field of renewable energy. At the same time, other “silver items” are being sold, such as stakes in existing concession companies, given that new projects added to the groups’ quiver will generate significant revenue streams in the coming decades.

According to market sources, the average participation of the private sector in PPP projects is 25%, and the rest of the necessary financing comes from bank loans and financial contributions from the state. This means that for the EUR 5 billion PPP projects that have been announced or are in the “hallway” of the announcement, the construction groups applying for them will need equity capital in the order of EUR 1.25 billion. If we calculate the funds required for participation in concession projects, the total “account” is expected to be even higher. For example, a new concession contract for Attica Road alone is estimated to require bids worth €2 billion or more.

In this regard, the GEK TERNA group is in the final stages of negotiations with the Australian First Sentier on the sale of TERNA Energy. The final value of the deal is expected to exceed 2.5 billion euros if the Australian group makes a public offer for all shares, which is said to have been agreed in the context of the negotiations. This means that GEK TERNA will be able to count on EUR 950 million in revenue, which it will be able to use for future concession contracts and PPPs such as, for example. new Attica Road contract. On the contrary, GEK TERNA has already secured the necessary liquidity to cover its equity needs, both for the Egnatia Odos concession, which will require 300 million euros, and for the establishment of an IRC (casino) in Elliniko.

The sale of highly profitable renewable energy activities is at the heart of the strategy of many large groups.

Accordingly, Ellactor Group management is expected to complete the full financial and corporate transformation of the listed company by mid-December. This will be done through the early redemption of all 670 million euros of international debt bonds and the simultaneous transfer of 75% of energy production activities from renewable energy. Commenting on the redemption of the bonds, the group’s management said that “this is a strategic move to protect the group’s capital, which will increase its investment flexibility during a period of particular financial difficulties.” It is recalled that the annual value of the bonds amounted to approximately 45 million euros.

Thus, Ellactor is freeing up the “power” to attract new liquidity in the future, which it plans to use to strengthen its presence in the concessions and PPPs, as well as in the real estate market. Already within a week, the company has stepped up its participation in the concession company operating the Rio-Antririo bridge.

The seller of this participation in the amount of 20.53% and 21.55% was the Avax group, which received an amount of 60 million euros. At the same time, the company announced it will also proceed with the sale of its 19 percent stake in Olympia Odos, a process expected to be completed by early 2023 at the latest. RES, as well as its headquarters in 2020. From these sales, totaling €153.5 million, Avax made a profit of €92.3 million without resorting to bank loans or other forms of capital raising. Of course, the purpose of these steps is to cover the capital that the group will need to carry out the important projects it has undertaken or claims. Among other things, Avax is expected to sign, together with the Mytileneos group, the most important individual PPP project worth 460 million euros for the new ring road in Thessaloniki (Flyover), while it is “present” in most PPPs and announced concession projects.

Funding of €220 million is expected to be secured by Intrakat in the next period to finance new acquisitions of similar companies in and outside Greece (€50 million), provide working capital (€50 million), as well as finance its investment program in the sector RES (120 million euros).