Preparations are in the final stages to begin the bidding process for 100% of Elpedison between the two competitors Helleniq Energy and Edison.
As is known, the two companies that have been “co-located” 50-50 in the Elpedison company for fifteen years have decided to go ahead with a velvet divorce, with the company ending up with whoever offers the highest price to buy the other’s share.
According to information from “N”, the process will begin, if not next week, at the latest by the end of the month, with Helleniq Energy having the first say, which will present the first offer. It should be noted that both parties have assessed the “asset” called Elpedison and based on this they will present offers, with each party being invited to accept the other’s offer or to present a counter-offer, continuing the process.
It is worth noting that both sides insist they want to buy 50% of the other to gain full control of the company, which portends a tough battle with the final price of half the equity likely to reach very high levels.
At this time, the two companies are in the process of reaching an agreement on all pending issues regarding how the process will be conducted, which, according to information, should be concluded by the end of next week. This will practically mean the signing of the “head of terms” and the “Process Letter”, two basic conditions for “opening” the bidding cycle.
How is the company evaluated?
According to unconfirmed reports, the refiners believe that the value of the company does not exceed 400 million euros, while the Italian side is said to value it at between 500-600 million euros, believing that it has great growth prospects due to the many unexploited assets it owns. From the licenses for the power plant in Thessaloniki and the LNG storage and regasification terminal in Thermaikos, to the investment plans for storage systems.
In essence, this discrepancy in asset valuation simply shows how each side perceives the company and its prospects. It will not delay or hinder the process. Each of the two parties, as mentioned above, can make its own assessment and, based on it, present its offer to the other, who in turn can accept it or make a counteroffer.
The logic of Helleniq Energy
The “why” of Helleniq Energy’s move to “divorce” the Italians was explained in detail by the Group’s CEO during the recent annual general meeting of shareholders.
He stressed, among other things, that “we have invested around half a billion euros in RES and as the model changes and risks increase as the era of “locked” compensation prices ends, a more holistic portfolio management is needed to be able to offer comprehensive services to our customers. Therefore, from the moment we enter a verticalization process, we want to have access to Elpedison’s customer base (and even more so when the company’s largest customer is Helleniq Energy) and be able to manage it.”
The financial numbers
On the other hand, as Siamisiis said, the fact that over the past 15 years Helleniq Energy has invested around 500 million euros in Elpedison, but has not received a single euro in dividends, will also be counted in the “scale”.
In 2022, Elpedison reported revenues of €3.2 billion and net profits (before taxes) of €150 million. Its equity amounted to €250 million, while its assets were close to €900 million. The company has not announced results for 2023, but its figures are expected to have declined, given the easing of energy prices.
