THE Apostolos Vakakisits main shareholder Jumbo, never ceases to amaze. While he manages the country’s largest retail chain – excluding supermarket chains – with the motto “keep it simple”, his thinking is particularly complex when it comes to the management of his shareholding.
Yesterday, when Jumbo’s share closed at new historical highs, reaching 30 euros for the first time, with its capitalization exceeding 4 billion euros, the joy industrialist decided to proceed with a new placement, the third in a row during the last seven years old.
Apart from the decision itself, which makes many wonder what the ingenious entrepreneur has in mind, there are even more who are looking for answers as to why Scrooge McDuck of the Greek business did it with such a deep discount.
Apostolos Vakakis through Tanocerian Maritime sold approximately 2 million shares, or 1.5% of Jumbo, at a price of 27.20 euros. This price corresponds to a discount of 9.3% compared to the closing price of the share yesterday (30 euros). The transaction took place, according to information, after the close of yesterday’s session of the Athens Stock Exchange, with the price estimated at 55.5 million euros.
It is noted that the Cypriot Tanocerian Maritime, which is fully controlled by Apostolos Vakakis, operates mainly in the financial sector, while holding holdings in investment portfolios, such as real estate. Jumbo is 9.99% owned by FMR LLC and 5.0514% by Capital Group Companies Inc.
The third placement since 2017
3 years ago, specifically in March 2021, the 70-year-old entrepreneur had collected another 77.17 million euros, from the concession of 3.86% of the company for 14.7 euros per share.
And that placement was made at a lower price not only in relation to the then current price of the stock, but even to the corresponding move it had made in 2017.
It is recalled that in June 2017 Mr Jumbo had sold 3.5% of the company at 14.95 euros per share and had collected 71.19 million euros.
In reference to the just prior allocation of shares, the businessman, in response to an analyst’s question, had stated: “I sold my shares because I have two daughters…. One who will stay in the business and “run” it and another who is not involved with the business, but follows a different direction. And I don’t want them to have any conflict…”
Future plans and question marks
Now the interest moves to the future movements of Mr. Vakakis, i.e. if the businessman plans with the funds from the sale of shares of implementing some other investment.
In addition, the question is whether there will be a new investor in Jumbo’s share capital through the placement or whether the participation of existing shareholders will increase.
It should be noted that after the completion of the transaction carried out through Citi for trading from today, May 9, the percentage of Apostolos Vakakis in Jumbo has fallen from 26.72% 7 years ago to 17.86%.
The gallantry of dividends and the treasury
Having broken the one billion euro barrier in terms of turnover last year, Jumbo’s net profit after tax has increased by 21.88% compared to 2022, reaching 303 million euros.
The very positive performance – for one more year – led the management to propose to the general meeting of shareholders the distribution of a dividend of 1 euro/share (gross), an amount which in total represents approximately 45% of the group’s net profits.
On December 31, 2023, cash and cash equivalents, together with other current financial assets of the group, were higher than the total amount of its loan obligations and lease obligations, by the amount of 370.41 million euros against 522, 48 million euros on December 31, 2022.
This happened because the company, taking advantage of its strong and healthy financial structure, proceeded, in May 2023, to prepay the entire joint bond loan of 200 million euros, issued in 2018 and maturing in 2026, without any charge or other cost.
The predictions
Although the sales are “running” satisfactorily, as can be seen from the performance of the first quarter of this year (+6%), the head of the group kept the bar low for sales growth of 8%-10% in 2024, considering that the effects of the outbreaks of war should be assessed and crises in the region.
Source: Ot.gr
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