Today we will focus on two matters of immense investment interest.
1) It is a matter of days a major Greek bank, one of the top four, will announce a surprise deal that will shock even the most seasoned observers. Something truly impressive is coming and BN partially reveals it. Anyway, get ready, it is very powerful and will shock the Greek Stock Market, and this is 100% confirmed information. It does not concern Piraeus and Paulson, but perhaps—let's say perhaps—it concerns the bank with 113 billion in assets and 9.26 billion in tangible book value; alright, we understand which one it is. The main shareholder will give away a certain percentage somewhere. That's all for now.
2) Do GEK TERNA's loans carry share pledges? Some argue that among the collateral provided by GEK TERNA are guarantees pledged with shares of the group, whose stock has plummeted. Accounting-wise, GEK TERNA has lost 1.2 billion from its market value. There are certain rumors stating that the share pledges lie in the 30 to 32 euro zone, and if this holds true, the stock reached 36 euros intraday. And obviously, some are anxious; the banks that financed GEK TERNA and now see shadows. If collateral in shares exists, GEK TERNA must confirm or deny it; if it fails to do so, a veil of mystery will overshadow the stock.
How GEK TERNA lost 1.2 billion in market value
GEK TERNA went through a long period of introversion when the group, alongside TERNA Energy prior to its sale, fought to hold onto 11 to 12 euros, and main shareholder Georgios Peristeris struggled with his personal loans which were also tied to share-backed loans. Since then, many developments have occurred. TERNA Energy was sold, significantly mitigating the pressure on Peristeris's personal loans and easing pressure on the GEK TERNA group, which had been stagnant. GEK TERNA found itself outbidding competitors in all major highway concessions—paradoxically—and reaching right up to the present day, despite displaying meager profitability relative to the scale of its projects, despite being an over-leveraged group with 9.3 billion in loans, bonds, and letters of guarantee, and with the assistance of Santander, the major Spanish bank; it reached 48 euros or 5.7 billion in market value. Georgios Peristeris, as the primary shareholder with approximately 30%, saw his wealth in GEK TERNA valued at around 1.7 billion euros at 48 euros.
Why did GEK TERNA lose 1.2 billion in market value?
GEK TERNA argues that it is a healthy company, while concealing the fact that, for instance, certain loans are tied to project progress, essentially transferring risk to the banks. But why did it lose 1.2 billion in market value so easily and why was it discredited as a company with the postponement of a 500 million bond issue, which it supposedly did not need? Recently, GEK TERNA's stock dropped to 36 euros; a valuation of 4.3 billion euros. GEK TERNA's current market value is 38.5 euros or a total capitalization of 4.5 billion euros, so from the highs of 48 euros the loss in market value is 1.2 billion euros or 22% of its capitalization. It should be noted, however, that this loss is of an accounting nature and can fluctuate based on stock market conditions.
The answers are obvious
Investors are worried; GEK TERNA is leveraged at 10 to 12 times EBITDA (earnings before interest, taxes, depreciation, and amortization) and is currently valued at 28 times earnings, a valuation that exists nowhere else... It is a ridiculous excuse for GEK TERNA to pretend that postponing the bond issuance means nothing since the 500 million was a speculative move; it did not need them immediately. Obviously, GEK TERNA is lying, thinking investors will not figure it out. GEK TERNA, with 9.3 billion in loans, bonds, and letters of guarantee, has failed to convince; its business narrative is full of holes, carries numerous risks, and raises many questions. Let us note that the SSM—the Single Supervisory Mechanism of banks—initiated an audit of the 4 major systemic banks, checking the 25 largest borrowing companies and the information exclusively reported by BN (bankingnews) was 100% cross-checked and 100% confirmed.
Santander's anxiety and Peristeris's secret
Following GEK TERNA's shocking fiasco, Santander, the Spanish bank that issued a bubble target price of 62 euros for the stock—meaning 118.93 million shares X 62 euros = 7.4 billion in total market value, translating based on 2026 earnings to a P/E of 46. Obviously, in its effort to support GEK TERNA, Santander is self-ridiculing as a banking group. All of them think investors can simply be deceived by junk reports, trash reports. But behind all this: what is the big secret of Georgios Peristeris, who manages the GEK TERNA group and obviously would prefer not to be revealed?
www.bankingnews.gr
Σχόλια αναγνωστών