The ever-expanding international investment interest in Greek assets and values mobilizes the domestic business forces and forms an environment of rearrangements and restructurings in all branches of economic activity. And of course it does not leave unmoved the international schemes that invested at an unsuspected time in the still wintering Greek economy, when expectations were low, the risks high and the risk even greater. Now a series of events and conditions has completely changed the picture.
The recovery of the investment grade, the extremely positive course of the bonds, the certainty that the public debt is reduced and its management becomes easy in the medium term, the elimination of the political risk and together with the high performance of the Athens Stock Exchange, the flourishing of tourism, the jump in the height of the values of the “Eleftherios Venizelos” Airport, the revival of PPC, the under-profitability of the powerful groups and the explosion in real estate prices due to the growing external demand, the acceleration of the works in Elliniko which has pushed the properties of Glyfada and Voula to the 8,000 to 10,000 euros per meter, create an atmosphere and an environment of great profit opportunities in the hitherto wounded economy.
Great interest
Characteristic are the descriptions of senior bank executives who recently found themselves in the US, at the forum organized by JP Morgan and the Greek-born managing director James Dimon. The CEO of Eurobank Fokion Karavia he was impressed by the strong interest shown by long-term institutional investors who until now had run away as soon as they heard about Greece. This year they came of their own accord and the most typical thing he mentions is the interest shown in Greek values by the managers of the pension fund of the UN employees, which manages reserves of 85 billion dollars.
Respectively the CEO of Alpha Bank Vasilios Psaltis he did not hide his enthusiasm for the unprecedented range of investment interest in Greek values. He believes that when the rating agencies upgrade the Greek banks to the levels of the Greek economy, the interest will multiply. The non-distribution of dividends currently prevents their upgrade, but it is estimated that soon the European supervisory authorities will lift the relevant ban.
The disposal within March of the share held by the Financial Stability Fund in Piraeus Bank is also considered critical. If it proves successful and we head for a €1 billion deal for 20% of the bank’s shares, things will take on a different dimension.
Following these, there is a common belief in banking and business circles that we are facing a new cycle of highlighting and asserting Greek assets and values and, by extension, a new phase of restructuring of the private sector of the Greek economy. The processes are already redundant in all sectors, with the greatest interest of course being manifested in dynamic extrovert and export companies.
Energy
It is indicative of the fact that the rapidly developing energy sector is considered the most attractive and the most competitive. And this because beyond the production possibilities, the cycle of international electrical interconnections is dynamically developing, adding values and interest. Electric grids take on another value in this time of fossil fuel weaning. It is no coincidence that the electricity generation sector using alternative forms of energy is dominated by the strongest figures of Greek entrepreneurship. Nor is it a coincidence that in this particular sector transnational forces are exerted, specifically powerful funds with hundreds of billions of assets. Especially after the consolidation of PPC, the competition reached unprecedented proportions. The aggressive disposition of a specific fund active in a number of sectors of the Greek economy is telling, which is rumored to be willing to sell other assets it has acquired in our country in order to double its stake in PPC. A fact that does not leave indifferent the domestic strong players, who are constantly establishing new positions of influence and power.
Constructions
Correspondingly, restructuring and restructuring movements are observed in the also intensely competitive construction sector. The multitude of outstanding projects, as well as new tenders for large projects, the new construction needs arising from the increase in the resources of the Recovery Fund and the hundreds of large private investments that it finances throughout the country, the acceleration of the Hellinikon projects with the skyscraper, the two hotels of TEMES of Konstantakopoulos, the shopping centers and the hundreds of luxurious private residences that will accompany the redevelopment of the entire coastal zone of the old airport create an environment for the exercise of many and particularly competitive forces.
It is rumored that the government and the Prime Minister personally are looking for ways of rudimentary consultation in order to avoid potential aggressive competitive moves, which are capable of questioning tender procedures and erecting obstacles to the speed of execution of projects. The appeals of the French against the tender process for a new concession of the Attica Road are considered typical. Greece has bitter experience of long-term legal disputes, which have only resulted in long delays, excessive costs and depreciation of investments. More partnerships and collaborations would offer answers to barren competition.
Health
Mobility is also seen in the health services sector, where the private sector appears to be growing at high speeds and absorbing ever larger shares of the perennially ailing and mismanaged public hospital sector and attracting the interest of international investors.
It is no coincidence that large private hospitals, on the occasion of the imminent establishment of non-state universities, are developing plans to create private medical and nursing university schools, looking forward to the cooperation of similar international university institutions. After all, the current government doctrine that does not care who provides the services clearly favors the better organized and more functional private sector.
Food
Mergers are also developing in the food and wine sector. The many small businesses facing problems penetrating international markets are looking for partners capable of offering opportunities for faster and sustainable growth. But big operations are also being prepared in retail. The growth of Sclavenitis, the unique management model it has developed, allows the purely Greek supermarket to gain ever larger shares, putting pressure on competitors. A major foreign-owned retail chain is rumored to be ready to divest as it feels it has run out of room for growth. The question is whether there are buyers available, able to offer a high price.
And in the area of pay TV, disinvestment moves are being prepared. Nova’s plan proved to be deficient and now those in charge are looking for an exit opportunity. Information is provided by investment funds willing to negotiate on the condition that the price seems reasonable and proportionate to the real capabilities of the group.
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