Hello, K.M. spoke on the phone yesterday with the new POTUS, inviting him to Athens. Everything went smoothly, but we need to see his new administration and “our points of support,” my source told me. They clarified that when the Prime Minister met Pompeo in Athens, it was already known in relevant circles that the former Secretary of State wouldn’t be part of Trump’s new cabinet. It’s just that Pompeo’s good relationship with Mitsotakis has been ongoing for years, so when the opportunity presented itself during Pompeo’s visit to Athens, they met up.
Presidency of the Republic
Since I had nothing else to report yesterday, I asked my source if there was any news about the President of the Republic. I should tell you that during the last meeting between K.M. and Sakellaropoulou, he didn’t mention anything about it, and naturally, she didn’t ask if she’d be his pick again. “How could he say anything when he hasn’t decided yet? Besides, we still have time until January, and as you can see, the landscape keeps changing,” my source said. However, I’ve heard that the experts have a not-so-short list and are evaluating popularity ratings. But don’t think popularity is a major factor in selecting a President. For instance, the current President wasn’t widely known outside the Justice sector.
The Magic Number
Let’s swing back to SYRIZA affairs because, as far as I understand, there aren’t many performances left; the troupe isn’t pulling through, so we take what we can. Kasselakis is fighting hard to find 10 MPs to form a proper parliamentary group so they can get some real work done, if you catch my drift. It won’t be easy, though, because the opposition is also working together. From Pavlaras, who’s taken on the task of dismantling him over his asset declaration (soon we might even be swapping reports!), to the more senior ones who’ve gone to the “big bosses,” so to speak, explaining that the kid isn’t fit for the errands we need him for. Not because he’s unwilling, but because he doesn’t know how. The truth is, this Parliament has better people for those kinds of tasks.
With the Arabs of Aqua Bridge
The negotiations that have been taking place over the past few weeks for the sale and rescue of Avramar, between Spain’s Atitlan and Aqua Bridge from the UAE, as mentioned in this column, have brought the Arabs closer to a final deal. The banks and advisors are pushing to finalize the agreement with Aqua Bridge, but at present, there are still processes underway on some aspects of the deal, and nothing definitive has been set yet, although a resolution is expected soon. Aqua Bridge’s offer is favored because it provides a better recovery for the selling banks, and there is no write-down of obligations to suppliers. Avramar remains (for now) the largest player in the domestic aquaculture market. However, as it leaves behind the high-demand summer period, it needs to come under new ownership by the new year; otherwise, the conditions for its operation will worsen even further.
“Green Light” for Blackstone on Grand Hyatt
The Plenary of the Competition Commission last Friday approved the €230 million deal, officially transferring control of Grand Hyatt Athens to Blackstone Group. A few days prior, the company Acropolis Bidco Single-Member S.A. was established, with Alejandro Hernández-Puértolas Pavía, CEO of Hotel Investment Partners (HIP), a subsidiary of Blackstone Group, as its President and CEO. The property on Syngrou Avenue will be transferred to this company. The initial share capital of Acropolis Bidco is set at €48.4 million, fully covered by its founding shareholder, “Acropolis Holdco S.á r.l.,” based in Luxembourg City. It’s worth noting that the hotel was acquired by the Henderson Park and Hines consortium in 2017 through an auction for €33.5 million, followed by a €140 million investment to expand the hotel onto an adjacent property, increasing its capacity to 528 rooms. Blackstone, through Hotel Investment Partners (HIP), controls 73 hotels across Greece, Italy, Spain, and Portugal, totaling 22,000 rooms in the Mediterranean region.
ION’s “Sweet” Deals
The next steps for ION’s two recent “sweet” deals were taken in the past few days. These involve acquiring majority stakes in two major players in the candy industry, Lavdas and Olympic Hermes. These moves, led by Spyros Theodoropoulos, were announced over the summer. Last Friday, November 8, ION’s Board of Directors gave the green light to proceed with the agreements to the next phase. Specifically, the Board approved, in accordance with Article 101 of Law 4548/2018, a special permit for the transaction involving the purchase of: a) 1,326,010 shares of “Lavdas S.A.,” representing 74.99% of its share capital. It’s noted that part of these shares is owned by Spyros Theodoropoulos, Vice President of ION’s Board and controlling shareholder of the majority stakeholder. The shares will be purchased for €14.52 per share, totaling around €19.25 million. b) 82,493 shares of “Olympic Hermes S.A.,” also representing 74.99% of its total share capital. Here too, some shares are indirectly owned by S. Theodoropoulos. The shares will be bought for €39.32 per share, amounting to approximately €3.24 million. The transaction is expected to be completed by December 31, 2024, and as stated in the decision, it is considered beneficial for ION as it allows entry into a related business sector and strengthens its growth plan. Lavdas S.A. has been active in the candy market since 1953 with great success in the Greek market, and in recent years has expanded to European, US, Asian, and Arab markets, where it exports more than 50% of its products. Similarly, Olympic Hermes S.A. has been present in the market since 1958 with distinguished confectionery products.
EKTER: Shareholder Dispute or Coincidence?
On November 25, the feast of Saint Catherine (God help us), the extraordinary general meeting of EKTER shareholders has been rescheduled, with the main agenda being a decision on the merger with Energiakos Komvos, which owns a five-star hotel with 100 rooms on Paros. This move aims to provide the listed 6th-class construction company with the necessary capital to upgrade its contractor license and advance from the 6th to the 7th class of construction companies. Yesterday’s extraordinary general meeting did not take place due to a lack of quorum, as 51% of the company’s shares were required for approval, but only 38.96% attended. Notably absent were two major shareholders: Ioannis Chrysospathi, a civil engineer and owner of two 4th and 5th class construction companies, holding 5% of the company, and Angelos Papageorgiou, controlling a 10% stake. He is the son of Spyros Papageorgiou, one of the founders of AEGEK, EKTER’s parent company, which was acquired 17 years ago by Thanasis Sipsas, the current CEO and principal shareholder. The question arising since yesterday afternoon is whether the 15% absence hints at a potential disagreement among shareholders related to strategic issues and future decisions, or if it’s due to other reasons. It’s worth noting that in recent days, the management has faced criticism from minority shareholders regarding the merger decision, which is perceived as favorable to Thanasis Sipsas. However, the company claims there is no disagreement and states it is unaware of the shareholders’ stance, insisting that they have been fully informed about the management’s plan.
The Ongoing Brawl Over Hellenic Defence Systems
Yesterday, I wrote about the scuffle that has erupted between the Czech MSM GROUP and ONEX of Panos Xenokostas over Hellenic Defence Systems (HDS). The Council of State discussed ONEX’s request for an interim measure to prevent the signing of an agreement that would establish a joint venture between Hellenic Defence Systems and MSM GROUP. For two entire hours (from 13:30 to 15:30), the seven lawyers from both sides argued their cases before the Council of State. The court requested that both parties submit their memoranda by November 25, effectively freezing the process until then. The decision will be announced thereafter, bearing in mind that the same case will be substantively heard by the 4th Chamber of the Council of State on December 3. It is now almost certain that the HDS-MSM Agreement, even if it passes the Council of State’s scrutiny, will not be signed by the current CEO of HDS, Nikos Kostopoulos, whose term ends on December 4, with no action taken so far to renew it.
Bids in December for the Sale of National Insurance Building
A one-month extension has been granted by the advisors of National Insurance (Savills Hellas, Cushman & Wakefield Proprius, and Colliers Greece) for the submission of binding financial offers aimed at selling the impressive building that currently houses the central offices of National Insurance on Syngrou Avenue. CVC Capital has set a target price close to €120 million, and recently, new investment interest has emerged, meeting this goal. As a result, instead of the initial November 15 deadline, the binding offers for the 20-year-old building, covering an area of 67,858 square meters in the city center, will be submitted by December 15. Once the sale process is completed, the services of National Insurance will be relocated to the renovated Karageorgi Servias building. The Mazarakis administration has initiated a cost rationalization program at National Insurance, which includes the voluntary exit of dozens of employees, the sale of building facilities, and the reduction of operational expenses.
The Commercial “Marriage” of IKEA and Plaisio
Despite the early hour, there was a crowd yesterday at the IKEA in Eleftherios Venizelos Airport as the new Plaisio Computers store, the 26th in the chain and the largest in terms of space (3,000 square meters), was inaugurated. Present at the event were Vassilis Fourlis, Lida Fourlis, the company’s CEO D. Valachis, and Kostas Gerardos, who was accompanied by his son. In the casual discussions that followed, some news came out, including that Plaisio, following Eleftherios Venizelos and Ioannina, plans to open four new stores in 2025 and another four in 2026. V. Fourlis expressed optimism about the progress of the Fourlis Retail Hub at the airport (Fourlis reduced the size of IKEA at the airport and created space for three new stores: Plaisio, Intersport, and Holland & Barrett, making it a commercial destination). Those awaiting the spin-off of the subsidiary Trade Estates from Fourlis Holdings (with a percentage of the REIC to be offered) can expect a positive financial impact on the group, with the intention to complete it by the end of the first quarter of 2025.
Announcement Time for Aegean Airlines
This coming Thursday, Aegean’s management will announce the results for the third quarter and the nine-month period, but analysts’ attention will be elsewhere. The year 2024 was a challenging one for Aegean; besides dealing with ongoing conflicts, the airline faced aircraft checks (grounding) to complete repairs on the GTF engines of A320/A321neo models concerning CO2 emissions, and an extraordinary disbursement of €85.4 million to repurchase warrants from the state. Now, all eyes are on 2025—a year that everyone hopes will see fewer wars, a shorter process for early engine inspections (as it will involve fewer aircraft), and, of course, the year when the investment in Volotea will start paying off. Additionally, 2025 could be a year of expansion for Aegean toward the East, the Gulf countries, and North Africa. The prospects for 2025 are the driving force that could bring Aegean back into the “billionaire club,” as the current market capitalization of €903.4 million does not satisfy the management.
Coca-Cola Revisits Russia
Investors at the London Stock Exchange believe that with the Trump administration, there could be a normalization of relations with Moscow, leading to Coca-Cola’s return to the vast Russian market. This mere expectation is causing a significant rise in Coca-Cola’s stock price at the London Stock Exchange, which in turn positively affects the share price of Coca-Cola HBC in Athens. The stock, up by +2% at €34.4, is worth an impressive €12.8 billion, equivalent to the combined market capitalization of OPAP and OTE. Analysts predict that Coca-Cola HBC’s turnover for 2025 will be €12.9 billion, which is roughly its current market value, with net profits estimated at around €870 million.
Suspicion of Broader Market Gains
U.S. stock markets continue the “Trump party time” with consecutive upward sessions. European stock markets are ignoring upcoming challenges and maintain their upward streak without fear or hesitation. The Athens Stock Exchange follows suit, with the General Index closing yesterday at the session’s peak of 1,428.4 points (+1.08%). The total transaction value exceeded €125.6 million, with €29.8 million in block trades. Banks were once again the trading volume leaders, accounting for 62% of the total transaction value, but for the first time after many sessions, we saw other FTSE 25 stocks rallying with significant volume and upward trends. There was considerable trading in Cenergy (+2.44%) at €8.38, Viohalco (+2.12%) at €5.29, Metlen (+1.96%) at €33.22, OTE (+1.27%), Motor Oil (+1.01%), and Aegean. Eleven out of twenty FTSE Mid Cap stocks closed positively, with ADMIE standing out at €2.385 (+2.36%), PPA at €30 (+2.04%), and Intralot at €0.96 (+1.16%).
Celebration for Bitcoin and Musk
The cryptocurrency party continues non-stop after Trump’s re-election. Bitcoin’s market capitalization has now reached the incredible record of $1.7 trillion. This means that in the past 12 months, $1 trillion was added to Bitcoin’s market cap. Alongside the crypto surge, Elon Musk is also celebrating. The net worth of Trump’s close ally and sponsor reached $320 billion yesterday, as Tesla’s stock gained another +10%. This means that Elon Musk’s net worth is now three times greater than the combined market capitalization of automakers Ford and General Motors.
