March 26th, 2015

Greek listed companies divest subsidiaries and assets to improve liquidity and reduce debt

Greek listed companies mostly active in problematic sectors (coastal shipping, fish-farms, capital goods), which face structural problems as well as high debt, have discretely proceeded to sell international subs and real estate assets during 2014.

Nireus Fish-farms announced the sale of Turkish subsidiaries ILKNAK and MIRAMAR to a Turkish businessman for an amount close to 4 million €.

ANEK Lines and Attica Holdings, both active in the Greek coastal business sold vessels in excess of 50 million € to reduce debt and refocus on profitable lines.

Voyatzoglou Systems a company focusing on the provision of equipment and services to the retail market, sold real estate assets worth in excess of 12 million €. Varvaressos textiles also deivested real estate worth in excess of 9 million €.

G.E. DIMITRIOU, a commercial company active in white goods sold subsidiaries in a restructuring effort involving focusing on core strategic markets and reducing debt.

ELVE Garments’ announced the sale of a majority stake in CALIN SA - active in importing swimwear and lingerie products - for 11 million €.

Akritas wood processing company sold its Bulgarian subsidiary active in commercial exploitation of forest wood.

Mechaniki a troubled construction company sold a piece of land in Maroussi- Athens for 4 million €.

It is noted that some of the above companies do not face financial distress.

We expect this trend to continue in 2015 as management teams are gradually realizing that postponing sales of non-core activities and assets bought at higher prices during the over-investment phase of the Greek economy, does not guarantee higher sales proceeds while servicing the related unnecessary debt has become quite costly.

Sigma Catalyst Partners

5 Valaoritou Str. Athens - Chalandri 15232 - GREECE
Tel.: +30 210 68 52 411, Fax: 211 017 33 88
office[at]sigmacatalyst.gr

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