AKTOR Group of Companies has officially announced the completion of the largest acquisition in its history, acquiring 100% of AKTOR Concessions shares from the ELLAKTOR Group for a net consideration of €194.6 million, entering a new era of growth that positions it at the top of the market. According to the official announcement, with the integration of AKTOR Concessions into the AKTOR Group, a major cycle in the infrastructure sector is completed, marking the Group’s significant strengthening and accompanied by an important economic foundation for the future, as the acquisition of AKTOR Concessions ensures strong and predictable cash flows for its future path. According to the company, combined with its existing or planned investments, AKTOR Group forms the healthiest and one of the largest PPP and Concession project portfolios in Greece, accelerating the implementation of its business plan aimed at diversifying revenues and creating value for shareholders.
Commenting on the completion of the acquisition, AKTOR Group Chairman and CEO Mr. Alexandros Exarchou stated:
“The acquisition of AKTOR Concessions represents a pinnacle milestone in our Group’s history. We are forming the healthiest and one of the largest PPP and Concession project portfolios in our country, which will strengthen us catalytically and accelerate our strategic planning, offering stable and predictable cash flows for the future and ensuring adequate revenues for the period when traditional construction market opportunities will be smaller.”
Mr. Exarchou added: “In less than two years, we have successfully completed all the major acquisitions we had set as targets. We are implementing our future plan with reliability and determination, building a strong business Group with investments in new fields that create value for our shareholders. The new era for our Group has begun and we are pleased that AKTOR Concessions is now part of AKTOR.”
Strong cash flows and targets
The total future cash flows from AKTOR Concessions and AKTOR Group’s existing portfolio, combined with construction project margins and other synergies, is expected to exceed €1.2 billion over time, shielding the Group from fluctuations traditionally observed in the pure construction market.
With the acquisition, AKTOR Group accelerates the achievement of its target EBITDA of €40 million from PPP and Concession projects as early as 2025, on a pro forma basis.
Large participation portfolio
The Group’s new expanded portfolio includes participations in 15 PPP and Concession projects. Specifically, AKTOR Group acquires stakes in significant concession companies, such as Aegean Highway (22.2%), Bridge SA (27.7%), Olympia Odos (20.5%) and Moreas (85%). Additionally, AKTOR Group strengthens its participation in PPP projects, such as in “Pasiphae Odos” (45%) and “Pylia Odos” (100%) companies, which are constructing the Northern Road Axis of Crete and the Southwest Peloponnese Highway respectively, while acquiring equity presence in new PPP projects, such as the Tavropos irrigation network, where AKTOR Concessions participates with 60%.
Opportunities and synergies
It also gains access to even more market opportunities, as approximately 25 tenders for building, transportation or hydraulic projects in Greece are maturing and in progress, in which AKTOR Group participates either directly or through AKTOR Concessions.
Furthermore, the Group acquires notable participations in parking space management companies in Athens and Thessaloniki, such as the well-known Polis Park company, in which the Group’s new subsidiary participates with 33%. Marina Alimos is excluded from the transaction scope.
With AKTOR Concessions’ integration into the Group, possibilities for intra-group synergies from other activity sectors are enhanced, such as construction and facility management, while the Group gains access to vast experience and know-how in concession projects that strengthen its capabilities, allowing it to capitalize on market opportunities from an even better position, both in Greece and abroad.
The transaction
AKTOR Group acquired AKTOR Concessions with an enterprise value of €374.3 million, assuming all existing obligations, using bank financing and equity capital. Taking into account AKTOR Concessions’ debt obligations as well as its cash available, the net transaction consideration amounted to €194.6 million.
