PPC is proceeding with an investment barrage of €8.4 billion over the five-year period 2022-2026., in accordance with the revised business plan drawn up on the basis of the new data created by the imminent share capital increase and the sale of 49% of HEDNO's shares. The bulk of the investments are directed towards renewable energy sources and the distribution network, while the management is also considering investment proposals in Southeast Europe in the field of renewable energy sources.
The previous business plan provided for investments of €3.4 billion for the period 2020–2023. The proceeds from the sale of the HEDNO «package» (€1.3 billion, excluding the debt assumed by the investor) and the €750 million capital increase create a significant «war chest» to which are added the operating profits and upcoming bond issues of PPC in order to finance the investment plan.
Both the capital increase and the sale of HEDNO shares will be finalized at an extraordinary general meeting to be held on October 19 to ratify the management's decisions regarding, on the one hand, the award of the HEDNO tender to Spear WTE Investments Sarl, a member of the Macquarie Infrastructure and Real Assets Group, and the share capital increase. According to the official position of the Superfund, will lead to the state's share falling from 51% today to a «minority stake of decisive importance.».
As company sources reported, «with its capital reinforcement and the implementation of its investment plan, A troubled former public utility company that was on the verge of bankruptcy in 2019 is now undergoing substantial financial restructuring. From losses of €900 million in 2018 and €1.6 billion in 2019, PPC moved into profitability with €35.2 million in 2020 and is expected to close with profits in 2021 as well, significantly increasing its capitalization (which was below €300 million in early 2019 to around €2 billion today), as well as its creditworthiness.
