GEK TERNA went through a long period of introversion when the group, along with TERNA Energy before it was sold, fought battles to stay at 11 to 12 euros, and Georgios Peristeris, the main shareholder, struggled with his personal loans that were also tied to... margin loans.
Since then, there have been many developments... TERNA Energy was sold, seriously mitigating the pressure on the personal loans of Peristeris and defusing the pressure on the GEK TERNA group, which had been bogged down.
GEK TERNA found itself outbidding everyone on all concessions for the major motorways, paradoxically enough, and reaching, just before the present, despite showing meager profitability for the scale of the projects, despite being an over-leveraged group with 9.3 billion in loans, bonds, and letters of guarantee, and with the help of Santander, the major Spanish bank, reaching 48 euros or 5.7 billion in market capitalization.
Georgios Peristeris, as a major shareholder with approximately 30%, saw his fortune in GEK TERNA valued at roughly 1.7 billion euros at 48 euros.
Why did GEK TERNA lose 1.2 billion in market value?
GEK TERNA argues that it is a healthy company, while hiding, for instance, that certain loans are tied to the progress of the projects, essentially transferring the risk to the banks.
Why, however, did it lose 1.2 billion in market capitalization so easily, and why was it discredited as a company with the postponement of the 500 million euro bond issue, which it allegedly did not need?
Recently, the share price of GEK TERNA retreated to 36 euros... a valuation of 4.3 billion euros.
The current market value of GEK TERNA is 38.5 euros or 4.5 billion euros in total market capitalization, meaning that from the highs of 48 euros, the loss in market capitalization stands at 1.2 billion euros or 22% of its market capitalization...
The answers are obvious...
Investors have become concerned; GEK TERNA is leveraged at 10 to 12 times EBITDA (earnings before interest, taxes, depreciation, and amortization) and is currently valued at 28 times earnings, a valuation found nowhere else...
It is a ridiculous excuse for GEK TERNA to pretend that the postponement of the bond issue does not mean much because the 500 million was a move of a speculative nature and was not an immediate necessity.
Obviously GEK TERNA is lying, thinking that investors will not catch on.
GEK TERNA, with 9.3 billion in loans, bonds, and letters of guarantee, has not convinced the market with its business narrative; it is riddled with holes, carries many risks, and raises numerous questions.
It should be noted that the SSM, the Single Supervisory Mechanism of banks, launched an audit into the 4 major systemic banks, scrutinizing the 25 largest corporate borrowers, and the report transmitted exclusively by BN (bankingnews) was 100% cross-checked and 100% verified.
The anxiety of Santander and the secret of Peristeris...
Following the shocking fiasco of GEK TERNA... Santander, the Spanish bank that issued a bubble target price of 62 euros for the stock, meaning 118.93 million shares multiplied by 62 euros = 7.4 billion in total market capitalization, which translates based on 2026 earnings to a P/E of... 46...
Evidently, in its effort to prop up GEK TERNA, Santander is ridiculing itself as a banking group.
All of them think that investors can simply be deceived by junk reports, reports fit for the trash.
But behind all this... what is the big secret of Georgios Peristeris, who manages the GEK TERNA group, that he obviously would not want revealed?
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