Motor Oil Management emphasizes the truth of its movement, which is integrated in the context of expansion of company activities and the synergy offered by the banking and media sectors.
Negatively, investors welcomed the expansion of Motor Oil in the media sector. Part of the company, which is one of the most reliable and stable securities of the Greek Stock Exchange, from the day after the announcement of the acquisition of 50% of the Alpha television station began to fall and lost almost 20% of its value in two days as a result of traditional investor concerns changing physiognomy with a shock investment movement that has nothing to do with core purification and the energy sector in general.
In addition, an agreement to expand to the media came shortly after the IBG Bank Acquisition Agreement, which was also difficult for investors to understand. Motor Oil Management, however, insists on the truth of its steps, which are part of the expansion of the company's activities and the synergy offered by the banking industry and the media with expansion in electricity and natural gas retailing after consolidating its position for years in the retail oil market outside of this refinery .
"Obviously, there are some foreign investors who believe that the expansion of banking and media activities is changing the Motors Oil business, and we have to convince them that it's not like that," they stressed the Motor Oil Management Circle, commenting on the retreat, which however rose to 2.22 % on Friday session.
The same circle presents the latest investment movements as a continuation of the logic of independence that characterizes the company, with new elements focusing on business opportunities that present a new environment of the Greek economy after leaving a memorandum and aiming for consolidation in Greece. Motor Oil management is not worried about any deterioration in the Alpha results group image because it estimates that the funds to be injected will significantly improve the media group. "Alpha is a healthy channel with probably the best place on the market." "Retail, advertising, communication channels and product promotions" highlight management circles, talking about synergies made with the retail sector in electricity, natural gas and petroleum products.
While relating to the acquisition of IBG, management circles are referring to the synergy created with a large network and 1.2 million corporate corporation cards (Coral, AVIN).
On the contrary, however, with the latest moves in the field of banks and the media which surprised the market, Motor Oil from the Vardinoyannis family, which began its activities in the early 1970s and today is one of the main pillars of the Greek economy with a leading role in the Southeast European market, with steps in investing in the energy sector, becoming a fully integrated energy group, following market trends and developments. This includes the NRG acquisition in June 2018, where Motor Oil guaranteed dynamic entry into the retail electricity market. With this acquisition and after previously obtaining a license for natural gas supply by RAE, Motor Oil has laid the foundation for strategic expansion in the retail gas and electricity market, utilizing a wide network of service stations (Coral and AVIN). During this year, Motor Oil was expanded into logistics.
The group's priority is the gas market
The strategic priority of the Motor Oil Group is in the gas market. The company monitors developments ahead of the privatization of DEPA. His interest in the growing gas market was also expressed by his attitude towards the acquisition of 49% of Shell's shares in EPA Attica by DEPA. Motor Oil also reacted during the acquisition agreement with an informal statement to the Competition Commission and then by submitting an official memorandum when the agreement was notified to the committee to investigate and approve the merger. Motor Oil opposes the acquisition agreement, arguing that EPA Attica's full control by DEPA, which is also a company supplier and active in the gas distribution sector, creates unfair competition. According to some information, the objection of Motor Oil is not only related to its activities in the retail gas market but also its interests at EPA Attica itself, because if the agreement with DEPA is not continued, the way for the third company to enter EPA Attica is because it is well known in the market that Shell has for years to escape the EPA Attica portfolio.