The increase of Greece’s PPC share capital, in simple stock market terms

The need for an increase in Share Capital in each company arises from the strategic plans and its capital structure. It is obvious that the PPC management saw the need for capital increase along with the existing borrowing and the proceeds from the sale of HEDNO[..]

The share capital increase with the resignation of the existing shareholders has a double reading: First, the management wants the expansion of the share composition with strong investment funds which can cope with capital injections and at the same time the main shareholder (Greek shareholder) does not want to contribute new funds to PPC, which is in line with the logic of privatization[…]

However, any capital increase negatively affects the “existing shareholders”, as they will have to “put their hand in their pocket” in order to maintain their shareholding.[…]

However, – by itself – the fall in the share price with the announcement of SCI is completely normal and does not automatically indicate any malicious or illegal manipulation.[…]

Full article (in Greek):