K.M., the TIF and the… earthquakes, Pierre and DIAS, the Divanis hotel sale, the Astir bonus
2025-04-29T07:33:46Z
The secret ace, acquisitions & firepower
The post K.M., the TIF and the… earthquakes, Pierre and DIAS, the Divanis hotel sale, the Astir bonus appeared first on ProtoThema English.
Newsroom April 29 10:33
Hello, you’ve already read the essence and the “main points” of yesterday’s cabinet meeting about the changes in OSE. What I’ll point out here is that, yes, generally a “bravo” was heard for Kyranakis, but there were also a few footnotes from some more cautious ministers who said, “but let’s not give the impression that nothing was done for safety over the past two years. First, because that’s not fair, and second, because it’s legally risky.” In any case, as they say, all over… the presentation went well in Athens too.
Earthquakes and K.M.
So, in yesterday’s cabinet meeting there were also a few “small” but interesting matters. First, Mitsotakis asked to be informed on how updated the government’s response plan is in the event of a major earthquake (knock on wood) where everything would collapse — power, telecommunications, etc. Let’s say the ministers have some satellite phones, but that’s about it. I think the emergency plan for earthquakes hasn’t been updated since the 80s, unless I was told wrong. A similar (roughly) issue discussed, with Chrysochoidis as the rapporteur, was related to the designation of the country’s “critical infrastructure.” Also very interesting is the Gerapetritis bill that will “control” security and essentially screen foreign investments — something the Americans and Europeans have been requesting for years. For example, to screen Russian and Chinese investments in the country’s critical infrastructure.
Mitsotakis’ message about the Thessaloniki International Fair (TIF)
Within the cabinet and with a message to his ministers to show… restraint in the “heroic” leaks about the TIF package, Mitsotakis told them that the planning hasn’t been finalized — in fact, it hasn’t even begun — as the priority is to pass the 2025 package first. The TIF planning exercise will take place in August, depending also on the fiscal data, given the priority of easing the burden on the middle class. I hear that within the cabinet, Mitsotakis also rang the alarm bell about international uncertainties.
Blackout
Today, Mitsotakis will be in Valencia, Spain, for the EPP conference. Since yesterday, however, various “blue” delegates who went there “got caught” in the big blackout. Let me give you some telling examples: Tzitzikostas was in a meeting with a Spanish minister when the lights went out, prompting the minister to switch into crisis management mode. On the other hand, Vozemberg, Meleti, and Aftias had arrived by plane in Valencia, where they were left for hours without power, meaning they couldn’t charge their phones, had no signal, and could only connect to the internet through the hotel’s wifi. In the same situation was Bakoyannis, while yesterday Tasos Hatzivasileiou also arrived as the advance guard of the “blue” delegation, finding himself in chaotic scenes on the streets.
The Election of Hatzidakis
Mitsotakis will have several meetings at the EPP, including with the future Chancellor of Germany, Merz, and I’m told that some “work” has been done so there are no complications and Kostis Hatzidakis is elected comfortably as one of the EPP’s vice-presidents. He himself has already begun international contacts, and I understand that there is a high-level understanding between Mitsotakis and Weber, who is being re-elected and doesn’t want any issues with one of the prime ministers from the EPP who participate in the European Council.
Pierrakakis – DIAS
Pierrakakis and “digital” are, as is well known, a package deal. Today, Kyriakos is visiting for the first time in his new capacity as Minister of National Economy and Finance the offices of DIAS – Interbanking Systems S.A. Together with CEO Stavroula Kampouridou, they will examine how the new “trend” with IRIS is spreading — that is, instant mobile payments that are free for consumers and very low-cost for businesses. As the “originator” of mobile applications in Greece (during the pandemic, as Minister of Digital Governance), Kyriakos Pierrakakis is now taking the lead in driving changes that reduce burdens from banking fees while also bringing in state revenue by curbing tax evasion. Additionally, with a new law recently passed, as of November 1, legal entities (i.e., companies, department stores, and supermarkets) will also be required to accept IRIS payments, not just individuals and self-employed professionals (e.g., tradespeople, bakeries, kiosks) as is currently the case. With your phone, you’ll “scan” the QR code at the checkout and instantly pay the receipt. However, the increase of the free transfer limit — from the current €500 to “plus 500” (€1,000 per day total) for shop purchases — is not expected to happen immediately. It needs a bit more time to be implemented, and gradually, it’s possible they may try to allow free consumer payments even beyond these limits, as with any other form of receipt payment (e.g., €1,500 for a Smart TV). The market is changing and — as I hear — international competition in this new “sport” is soon arriving…
From London, METLEN’s New Chapter
In London, the management of METLEN presented its business plan in front of 160 analysts, and opening his speech at the LSE, Evangelos Mytilineos remarked that “doing business in Greece is not so easy. Those who say that if you can make it in New York, you can make it anywhere,” he said, “have not tried doing business in Greece.” Giving an example of the difficulties, he said that in 2009 the group’s Treasury — our so-called money man — called him and said: “Mr. President, are you sitting down?” “I sat,” said the president of METLEN, “and he told me that the guarantees of around €600 million we had issued for projects in various countries were no longer valid and needed to be immediately replaced to avoid problems. And right after that,” he continued, “began the bad Greek experience that lasted for many years. In 2015, we were nearly out of the eurozone, the banks closed, and you can imagine how difficult the environment was for us to keep going. In 2017, when things began to settle down,” he emphasized, “with McKinsey’s help we started Project Big 1 to transform and strengthen the group. Then came COVID and the ensuing energy crisis, which not only didn’t halt our progress but became an opportunity for us. And that’s what I tell my colleagues: when there’s a problem, it’s not enough to solve it — we have to gain something from it too. And that’s exactly what’s happened in recent years.”
The secret ace, acquisitions, and firepower
Beyond that, during METLEN’s presentation at the LSE, it was made clear that the group is heavily banking on the applications of the technology it has developed for recovering valuable metals from industrial residues. In the Defense sector, it became known that they will soon have five large factories that will allow them to work simultaneously on five different projects. In the medium term, said Evangelos Mytilineos, “METLEN will have 18 different factories, 95 energy units (excluding thermal ones), and independent energy batteries.” Regarding acquisitions, it was emphasized that “the figures presented do not include any acquisitions, although without anything specific being said, it was clear that there are plans that are not for now. Today,” he stressed, “we are more ready than ever for an upscale M&A and we have the plans and the capital to implement it.” In any case, the group’s “firepower” consists of €1 billion in cash and another €2 billion in available credit lines. It was also mentioned that the immediate impact from U.S. tariff policy is zero—remarkable for a group that, as stated, “more than half of what we do is outside of Greece.”
The for-sale sign on Divanis hotels
The current “hottest” sector in the domestic real estate market is hotel properties, and precisely for that reason it’s no coincidence that information about both large and smaller deals is constantly circulating in the market. Following the agreement for the Astir Vouliagmeni from Prokopiou’s side—which is so far the largest tourism real estate deal of the year—one of the notable news items currently making the rounds is the rumored sale of the Divanis Group’s hotel portfolio. This group is among the most historic names in the sector, with a presence in Athens, Corfu, Larissa, Kalambaka, and led by CEO Mr. Spyros Divanis. The (non-binding) offers submitted before Easter are, according to observers of the process, from major international names—some of which also participated in a previous large tender for a major hotel property in Athens, which successfully concluded in 2024. However, these offers are lower than the target set around €700 million. The counterargument, on the other hand, is based on the fact that some of the group’s hotels are in unique locations and are irreplaceable—for example, the Caravel, which is closely tied to its surrounding area and will be next to the new destination “The Ilisian” at the former Hilton Athens, the Divani Apollon Palace & Thalasso on the Athenian Riviera in Vouliagmeni, or the hotel in Corfu at a prime location in Kanoni.
Bonuses and profits at Astir
Although Astir Vouliagmeni has passed into the hands of the powerful shipowner—both at sea and on land—George Prokopiou, aside from the former shareholders of Astir Palace who were literally “gold-plated” by their investment, it’s also the senior executives who are rightly receiving a satisfactory bonus due to the stellar performance of the iconic complex. As I learned, on April 16, a General Meeting of shareholders took place, which decided to distribute profits from previous years. According to the relevant minutes, “The General Meeting, having taken into account the decision of the Regular General Meeting held on 04.04.2024 and its approval of the financial statements for the fiscal year 2023, unanimously decides, in accordance with Article 31 of the Company’s Articles of Association in conjunction with Article 162 para. 3 of Law 4548/2018, the distribution of an additional portion of the total profits for fiscal year 2023 (balance sheet account retained earnings), namely the total amount of €248,824.47 to senior executives of the Company for their contribution through the effective fulfillment of their duties to the excellent financial and operational performance of the Company.” It is further noted that “already with the decision of 22.01.2025 by the self-convened universal Extraordinary General Meeting, an additional dividend of €12,287,550 from the profits of fiscal year 2023 has been distributed to the Company’s sole shareholder, according to Article 162 para. 3 of Law 4548/2018.” Furthermore, the General Meeting unanimously authorized the Company’s Board of Directors to implement the approved distribution of the €248,824.47 amount. The truth is that the Arab-Turkish consortium Apollo Investment Holdco, which acquired Astir in 2016 for €393 million, earned multiples through the sale of prime land plots in the area of the former Aphrodite Hotel, capital returns, and generous dividend distributions. Of course, to bring Astir into the “new era” of profits and prestige, there were also significant investments made in the renovation of the complex, the new Astir Marina, Astir Beach, the renowned restaurants, and the overall project, which was successfully executed by the management team led by the experienced manager, former CEO and Vice President Penny Zaglaridou.
Paranoidly cautious Jumbo
It’s not a typo. In Jumbo’s announcement regarding its 2024 financial results, it states: “Jumbo’s management remains optimistic about the future, but also paranoidly cautious toward anything that might prevent the Group from reaching it” (the future). So don’t be surprised that Tolis (Vakakis) has described himself as a “professional pessimist.”
Plastika Thraki’s turf and Don & Low
Plastika Thraki’s financial results did not particularly satisfy, even though management considered it another year of strong performance and maintained high EBITDA profitability. The stock came under pressure yesterday (closing at €3.81, -3.9%) as the market reacted negatively to a 6% drop in operating profitability and especially a 35% drop in pre-tax profits. This was partly due to increased (+9%) depreciation and investments made by the listed company, as well as an impairment from the cessation of artificial turf production, which weighed on results by €0.9 million. Additionally, the profitability forecast was not met. Overall, demand did not improve and remained weak, especially in the second half of the year and particularly in the technical fabrics sector, resulting in compressed average selling prices. It should be noted that one of the key reasons for the performance was the Group’s subsidiary, Don & Low, which significantly underperformed compared to the previous year due to particularly low demand in the United Kingdom and high production costs. The most worrying aspect, however, is that management warns EBITDA is expected to decline by 20%-25% in Q1 2025 compared to Q1 2024, as both raw material and especially energy costs are significantly higher—while in the first quarter of 2024 they were at much lower levels.
The Superfund gets moving
Yesterday’s Board of Directors meeting of the Hellenic Corporation of Assets and Participations (HCAP or “Superfund”) was lengthy. G. Papachristos appeared prepared and provided guidance to each subsidiary. Initial reports indicate that the first phase of GAIAOSE’s tender for the Gonos military camp—being developed by the Strategic Contracts Unit (PPF)—was approved, with three out of four consortia advancing to the second phase of the competitive dialogue. At the same time, the Deputy Minister of Sports’ decision to assign the development of the Vasilitsa ski resort to the Superfund proved successful, as there is now officially an economic operator–investor for the center’s upgrade.
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