How a company like GEK TERNA, which struggled for years due to excessive debt, suddenly manages to control all of Greece’s motorways and all motorway concessions is truly a cause for wonder. In fact, an active politician—a current Member of Parliament—stated to BN that there are many oddities in all these tenders, and the relationship between the major shareholder and the Maximos Mansion (the Prime Minister's office) raises many questions. "We will request an audit of all these tenders and how one company has taken all of Greece's motorways; perhaps the European Public Prosecutor should also be informed about this issue? It will be examined how it relates to Maximos or government figures and how this relationship influenced—if it influenced—the tenders."
This is particularly relevant regarding Egnatia Odos, where GEK TERNA initially did not have the funds to pay the concession price, which it eventually settled. This is a project that cost 7.2 billion and the concession was granted with a 66% discount on the construction value. How is a private company permitted to control Greece’s tolls, forcing the Greek people to pay Peristeris, a businessman who was faltering just a few years ago?
The most provocative stock market bubble
The ratio of 147.3 million in profits to a stock market value of 4.3 billion euros gives a P/E valuation of approximately 29 times after-tax earnings; there is simply no justification for this. The report by the Spanish Santander Bank, which gave a target price of 49 euros, is quite suspicious, and the information surfacing about how this report was orchestrated is rather troubling.
Over-leveraged
GEK TERNA shows 4.3 billion in debt; there are many questions regarding the group's borrowing, which is a staggering 29 times its profits. Which bank feels comfortable with a group that has borrowed 29 times its earnings? There is a massive issue here that, when the fullness of time comes, will prove that something is wrong... very wrong. GEK TERNA was a half-dead construction company when it owned TERNA Energy, and it continues today with the same outdated growth model, where no new funds are injected; instead, the investment consists of good relations with systems that grant work to the group. These nice narratives about taking on jobs—many projects just so it wouldn't go bankrupt, "too big to fail" as they used to say—let's look at them again... from the beginning.
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