Greek-Dutch battle over control of Ellaktor pushed back

Ellaktor’s general assembly has been postponed after a request by submitted shareholders that included shipowners G. Kaimenakis and Dim. Bakou, as well as CEO Anastasios Kallitsantsis. The move will avoid for a now a battle for control of the company with Dutch shareholder Reggeborgh.

In an expected move, the general assembly will now be held January 27. Among the issues shareholders will be called to vote on will be the election of a board of directors  (including independent/non-executive members), the revocation of all members of the audit committee and election of a new audit committee.

A week before the general assembly, however, the two sides are expected to cross swords at the extraordinary general meeting of subsidiary REDS. REDS is preparing to sell a property of significant value, over 6.5 million euros, in the center of Bucharest with Reggeborgh and the second largest shareholder of REDS, the businessman Chr. Panagiotopoulos, seeking to freeze the sale. Panagiotopoulos controls 10.2% of REDS and has clashed several times recently with the Kallitsantsis administration. At the same time, together with Reggeborgh, they have requested changes on Ellaktor’s board.

The shareholders who side with the Dutch are trying to take advantage of the fierce dispute that broke out between the brothers Anastasios and Dimitris Kallitsantsis and led to the resignation of the latter from the board of Ellaktor. They claim that the administration of Anastasios Kallitsantsis must publish his brother's resignation letter.

The current management of the company, as is clear from the suggestion to shareholders, is attempting to take advantage of the intervention from the Competition Commission. The other side replies that there is no question of intervention since Reggeborgh does not have a single member on the board of directors of GEK TERNA, while it does not appoint its own representatives to the board of Elaktor. "It supports another board of directors from the current one, which consists of well-known people in the Greek market", is their answer.

Yesterday, talk grew once again that the two shipowners are preparing a public proposal for the acquisition of all Ellaktor shares. They have until January 12 to acquire an additional 18.2% of the company based on the binding agreement they have signed with the joint company of the Kallitsantsi brothers. With the implementation of the agreement, they will control more than 23.3% of the listed company with Reggeborgh being around 27%. Both camps claim that they have the reserves needed, that is, the support of other strong shareholders without any further names having been made public.