A few days after the acquisition of Attiki Odos, GEK Terna sold a percentage of the company Nea Attiki Odos Concession to Latsco Direct Investments Cyprus, the investment vehicle of Marianna Latsis.
The transaction has been agreed at a premium of 15% over the initial investment already paid by the construction Group, which has gained added value since day one.
The agreement also demonstrates the confidence of the Latsis Group to GEK Terna and the management that will carry out this important infrastructure. It is recalled that Latsco participates with a percentage of 7.5% in the share capital of GEK Terna.
In particular, Latsco will pay for the purchase of 10% of Nea Attiki Odos Concession (GEK Terna’s subsidiary for Attiki Odos) approximately 77 million euros. This amount corresponds to 10% of the equity that the construction group has allocated for the purchase of the urban highway concession contract (671 million euros) plus an additional 15%.
Contract
GEK Terna signed as the sole shareholder of New Attiki Odos Concession on September 12 the concession agreement for the financing, operation, maintenance and exploitation of Attiki Odos for a period of 25 years, with the Greek State and the Hellenic Republic Asset Development Fund (HRADF). This is the largest concession contract ever signed in Greece with a total price of 3.270 billion euros.
In addition to the aforementioned equity, GEK Terna received a bond loan of 2.765 billion euros, with a maturity date of June 30 or December 31, in order to pay the price. Piraeus Bank, National Bank, Eurobank and Alpha Bank participate in this bond issue.
In order to complete the agreement with Latsco, GEK Terna intends to submit the relevant request to HRADF as the conditions for the sale of a percentage of Attiki Odos are provided for in the contract. Among other things, the construction group can sell up to 49% of the Nea Attiki Odos Concession in the first five years. Then it can do whatever it deems in its interest.
It is estimated that other similar agreements are likely to be concluded in the near future.
It is noted that the management of GEK Terna expects from Attiki Odos EBITDA (earnings before interest, taxes and depreciation) of around 300 million euros on average per year.
