Foreign institutional investors hold 50% of PPC for first time

Power utility PPC is entering a new era following yesterday’s completion of the corporation’s equity capital raise, which lowers the Greek State’s share in PPC below 51 percent, to 34 percent, for the first time in the utility’s 70-year history. Foreign institutional investors now hold an overall 50 percent stake in PPC, up from 27 percent, while domestic stakeholders have a 16 percent share.

Greek governments will no longer be able to do as they please with PPC. Issues concerning management, policies, strategic decisions and new hirings will now require the approval of foreign investors at the general shareholders’ meetings. The Greek State will remain influential with its 34 percent stake.

The corporation’s new equity line-up promises to transform PPC into a far more efficient corporation capable of achieving more favorable terms in capital markets.

The Covalis and Zimmer funds, among the new multinational stakeholders, specialize in utility investments. Wellington is regarded as a highly selective fund, more so than Blackrock, also part of PPC’s new equity line-up.

PPC easily achieved its 1.35 billion-euro target through the equity capital increase. The business plan, approved on the eve of the equity capital increase, envisions investments worth 8.4 billion euros between 2022 and 2026, but the amount is now seen rising to 9.3 billion euros. Investments are planned in renewables, networks, Balkan investments and waste management.

More than half the sum of new investments, or 55 percent, is planned for the RES sector, both in Greece and abroad. A further 20 percent is planned for distribution networks, 7 percent for conventional energy sources, 4 percent for waste-to-energy units and 3 percent for retail concerns.

Geographically, 85 percent of PPC’s new investments will be made in Greece, and 15 percent in the Balkans, primarily in Romania and Bulgaria.

PPC equity capital raise ending, shares must now be distributed

Power utility PPC now faces the favorable predicament of having to decide on how to distribute shares to funds following the overwhelming response to the utility’s equity capital raise that attracted dozens of major international players.

The final value of the offers submitted is expected to be announced today from 4pm onwards, once the book building process has been completed. Yesterday, the tally was four times over PPC’s 1.35 billion-euro target. Some 3.5 billion euros in offers are believed to have been made by international investors.

PPC needs to distribute the equity capital raise’s new shares by November 10 so that they may begin trading on the bourse by November 16.

Funds that have stepped forward with official offers, all worth over 100 million euros each, include Oak Hill, Covalis Capital LLP, Ghisallo Capital Management LLC, Marshall, Schonfeld Strategic, Zimmer Partners LP, Graticule Asset Management, and Helikon Investments, which already holds a 6.48 percent stake in PPC.

The equity capital raise will increase the stake of private investors from 34 percent to 66 percent for a multinational line-up. It will offer the corporation fresh capital for its enormous investment plan. PPC is striving to implement an ambitious 5 billion-euro investment plan by 2024.