There is an increase of up to 200 million euros in share capital, to eliminate the pre-emptive rights of the existing shareholders. Energy Holdingswho controls them Pipes of Corinth and Hellenic cables. The maximum price is 9.86 euros per share. His company of the Viohalco group plans to use to raise most of the funds with a total value of 187.5 million euros (after deduction of expenses) to finance the first phase of the cable factory in Baltimore, United States of America.
In particular, it is estimated that 154 million euros will be directed to the financing of the first phase of the construction of the new facility, which is expected to be implemented by the end of 2024. The schedule provides that the unit will be financed. to be completed by the end of 2027, with the management of Cenergy to put the total cost at 182 million euros, including the land acquisition price. After the first phase is completed, the company’s board of directors will decide whether to continue with the expansion of the unit (phase 2) that will allow the construction of submarine cables. As noted in the prospectus, the final decisions for the second phase of the project will be made after the first is completed and the conditions that will prevail, such as the US strategy on renewable energy sources (RES), are examined. In addition, approximately 33.5 million euros will be allocated to satisfy Cenergy’s wider business goals or to finance the expansion of the production capacity of existing facilities in Greece.
As also noted in the prospectus, Cenergy’s board of directors has identified significant opportunities in the US, which is a large and rapidly growing market. They show long-term growth similar to that of the company’s current core markets, such as a growing population, urbanization and an increasing number of data centers, which drive overall energy demand. Under the management of the Euronext listed company of Brussels and Athens, the creation of the new US unit is in line with Cenergy’s strategy to create value against the volume of sales, further strengthen exports and serve the ever-expanding energy infrastructure markets.
The capital increase during the administration of Cenergy will enable the company to increase the free float of its shares and expand its share composition inside and outside Greece. Goldman Sachs International is acting as exclusive general coordinator and co-arranger for the new public offering of shares.
In terms of financial performance, Cenergy management expects adjusted Ebitda to be between €245 and €265 million, and in the medium term they expect strong organic sales growth and adjusted Ebitda of €380-420 million. Turnover from the steel pipes and cables segments was €812 million from €798 million in the first half of 2023, while adjusted Ebitda increased by around 39% to €119.5 million.