Major foreign fund interest in PPC equity capital increase

Power utility PPC, preparing to stage an equity capital increase later this month, seen reaching one billion euros, is reportedly receiving a mass inflow of enquiries by funds from around the world, including the US, UK, France, western Europe, and Australia, expressing interest to acquire sizeable company stakes in excess of ten percent.

PPC is currently engaged in a continual flow of talks with investors ahead of the company’s general shareholders’ meeting, scheduled for October 19.

The power utility remains committed to its initial goal of maximizing participation for as many quality funds as possible, preferred over the participation of a limited number of funds.

The equity capital increase’s share price is expected to be set between 8 and 8.50 euros per share.

Taking, as an indicator, the interest of funds in the still-unfinished 49 percent privatization of distribution network operator DEDDIE/HEDNO, a PPC subsidiary, interested parties in the power utility’s equity capital increase could include Macquarie, the winning bidder in the DEDDIE/HEDNO privatization, CVC Capital, Blackrock, Ardian, KKR, First Sentier, Oak Hill, and Helikon Investments Limited, already holding a 5 percent stake in PPC.

The interest may also include players who placed offers for PPC’s 7-year bond issue in July. They include EBRD, Fidelity, Apollo, Carmignac, Twenty Four AM, Bluecrest and Pictet, Union Investments, Sona Asset Management, Barings, Aperture, Saba Capital and Vontobel.

In addition, a number of other players expressed early interest during roadshows late last year. These include Bell Rock Capital, Allianz Global Investors, Sephora Investment Advisors, Waterwill Capital Management, Cleargate Capital, and Zenon Investments.

The upcoming equity capital raise is expected to result in a decrease of privatization fund TAIPED’s current stake in PPC from 51 percent to 34 percent.