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Greek industrial group Mytilineos to simplify structure to cut costs
December 14, 2016 / 4:46 PM / a year ago

Greek industrial group Mytilineos to simplify structure to cut costs

ATHENS, Dec 14 (Reuters) - Greek industrial group Mytilineos will incorporate its power plant construction, aluminium and electricity production units into the main group, aiming to simplify its structure and achieve cost savings, it said on Wednesday.

The restructuring, which is expected to be completed by the end of August 2017, will diversify the group’s cash flow and help it make more efficient investments, Mytilineos said in a statement.

It said it expects the move will result in annual pretax operational cost savings of 20.6 million euros ($22 million).

“The new single entity will have a very robust balance sheet, tax optimized efficiencies, drastically reduced financial costs and synergies that will save us more than 21 million euros per year,” Mytilineos’ Managing Director Evangelos Mytilineos said in an emailed statement to Reuters.

Shareholders of power-plant construction unit METKA , Mytilineos’ only listed subsidiary, will get one Mylineos share for each METKA share.

The restructuring has to be approved by shareholders of each of the units involved and the relevant regulatory authorities, Mytilineos said.

Nomura, Barclays Bank and Lazard & Co. are acting as financial advisors. ($1 = 0.9388 euros) (Reporting by Angeliki Koutantou; Editing by Susan Fenton)

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