Commenting on press articles for the acquisition of EDS in FYROM, PPC S.A. clarifies the following :
- The main criterion for this acquisition is the implementation of PPC's strategy for its international expansion, with a leading role in the Balkan markets, in view of the integration of electricity markets in the European Union. It is not a coincidence that large European and other companies are already investing in the Balkan market and especially in FYROM. In this context there was great interest for EDS as well, the sale of which had been announced a long time ago.
- EDS was profitable for five consecutive years (2012- 2016). In 2017 it reported losses due to the energy crisis that hit Europe. In 1H2018 profits amounted to € 626,645.
- The valuation of the company was performed by two international valuators, in two different times. The first valuation was carried out during the acquisition procedure and concerned the company’s fair value. The second valuation was carried out in order to consolidate EDS’s financial statements in Group PPC financial statements according to IFRS. These valuations took under consideration the financial performance and the prospects of the company. The due diligence carried out by financial and law firms was completed in the beginning of April 2018. The amount of € 4.8 m. paid for the acquisition of EDS was less than both the above mentioned valuations.
Athens, October 10, 2018