BUSINESS

AutoHellas to absorb car importer P&R Davari

EVGENIA TZORTZI

TAGS: Business

The Vassilakis Group of companies is expected to acquire 70 percent plus the management of the firm that imports Hyundai and Kia vehicles to Greece, following an agreement between the two sides which are now in negotiations with the creditor banks.

Talks on the final deal are at an advanced stage, with a memorandum of understanding already signed, and it will probably be completed by the end of the year. It provides for the transfer of P&R Davari – the importer of Kia and Hyundai vehicles – to the AutoHellas group. Panos Davaris will likely retain 30 percent and continue to chair the company.

Sources say the negotiations with the banks concern the restructuring of P&R Davari’s loans, with the parties involved saying “a solution can be found.” The obligations of the P&R Davari Group amount to 109 million euros. The restructuring effort includes a generous haircut by the creditor banks and the acquisition of the P&R Davari assets by the creditor institutions.

With AutoHellas undertaking the Hyundai representation, the Vassilakis Group will be able to strengthen its importing activity, increasing the number of brands it represents and, in doing so, its market share.

The aim of AutoHellas, according to Giorgos Vassilakis, is to consolidate its leading position in the market, preserving the range of its activities that have allowed it to be successful in both the rental and the dealership domains.

At the end of 2015 AutoHellas absorbed Velmar (importer of Seat cars) and Technocar’s retail and car services activities. Its turnover from car rental services in Greece rose 11.6 percent from 2014 to reach 18.7 million euros last year.
 

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