Cenergy in an 800-mln-euro deal with Nexans

Cenergy in an 800-mln-euro deal with Nexans

The Viohalco group is negotiating the sale of Hellenic Cables, a subsidiary of Cenergy Holdings SA, to French multinational Nexans, in a deal that may reach up to 800 million euros.

Sources have told Kathimerini that the agreement will provide for the payment of cash and the undertaking of arrears by Nexans, as well as the transfer of Nexans shares to Cenergy. The valuation on the table is for 13 times the earnings before interest, tax, depreciation and amortization (EBITDA) that Hellenic Cables recorded in 2019 , which amounted to €60 million, or 10 times this year’s EBITDA, which is €80 million. The debts that Nexans will undertake amounted to €222.6 million in 2019, so the remaining €580 million will be in cash and Nexans shares.

The completion of talks and the sealing of the agreement might even be possible before Christmas.

The Athens-listed Viohalco group, which controls Cenergy, is examining this agreement in the context of the potential growth of Hellenic Cables, especially its subsidiary Fulgor, when it joins a multinational group such as Nexans. The cash the Greek group will get will also allow it to support its other subsidiaries.

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