Greece’s Public Power Corporation (PPC/DEH) announced on Friday the acquisition of electronics retail company Kotsovolos for 200 million euros.
The PPC noted, among others, that the acquisition of Kotsovolos will bring savings of approximately 100 million euros which, according to the investment plan, was intended for the creation of a logistics network and transport infrastructure as well as IT systems to manage them.
“The agreement with Currys plc to acquire Kotsovolos is for PPC a strategic transformation move, in a market that is changing globally, as the era of energy transition and new electrification creates a whole new world of solutions for households and businesses. With the acquisition of Kotsovolos, PPC is progressing even faster in its transformation into an integrated provider of products and services”, the relevant announcement emphasized.
UK electronics retailer Currys had already announced in June 2023 that it was planning to sell its Greek branch.
Kotsovolos has 95 stores of which 27 are megastores. 92 stores are in Greece and 3 Cyprus. In addition to the extensive network of physical stores the company has also two e-shops for Greece and Cyprus, a call center, its own warehouses, a privately owned fleet of vehicles and a large network of partners for the installation of the devices.
For the financial year 1.5.2022 – 29.4.2023, Kotsovolos had a turnover of €733 million, showing an increase of 12% compared to 2022, the EBITDA amounted to Euro 49 million and bank borrowing was almost zero.
The PPC said in its statement that in the new era of energy, the company needs to show customers the new possibilities and solutions with both physical and online stores. Already, PPC is investing in the creation of new stores, has completely redesigned 15 PPC stores.
These are places where customers can get to know, understand, up close the new green energy solutions, smart living products and much more, as well as specialized consultants for personalized proposals energy saving, the statement said, adding that My energy coach, myHome4all, e-self metering, GreenPass, Fix it, Smart living and electric scooters are just some of them.
It is indicative that PPC also launched the franchise method for the development of the network of new stores, giving the opportunity to individuals who want to acquire a PPC store through franchising to become its partners, starting with the new PPC stores in Kifissia and Petroupoli, in North and West Athens respectively.
The PPC intends to finance the acquisition through equity.
Completion of the acquisition is expected to take place within the first quarter of 2024 after receiving the necessary approvals.
The PPC, once a state company has been privatized since the economic crisis with the government to have significantly decreased its shares.
On 16 November 2021, the company completed a share capital increase that the Greek government as a shareholder chose not participate in. As a result, the Greek government’s shareholding decreased from 51.12% to 34.12%, which is currently held by the country sovereign wealth fund, the Hellenic Corporation of Assets and Participations (HCAP).
This change in shareholding means PPC has been privatized and is no longer controlled by the Greek government.