European interest in ELVO

A German company linked to France’s state-owned producer of military vehicles Nexter Systems has expressed an interest in the acquisition of the majority of the shares of the new Hellenic Vehicle Industry (ELVO), known as Hellenic Vehicle Industry.

Kathimerini understands one of the two main Israeli shareholders of ELVO, specifically Israeli-owned Plasan Sasa (47.6%), has agreed in principle to sell its holding and is evaluating the details of the transaction.

In parallel, a 4.8% minority stake controlled by a Greek entrepreneur appears to be on the bidder’s side. This way Nexter Systems can control developments. However, a proposal for the sale of its shares has been accepted and evaluated by the other main shareholder, Israeli group Naska Industries – SK Group (47.6%), the same sources report to Kathimerini. The Finance Ministry has been informed about the proposal and if none of the sellers withdraw, the transaction is estimated to be closed before the end of the summer.

The development comes just two years after the transfer of the ELVO from special administration, in which it had been placed since 2014 and following successive failed attempts to sell it.

However, since early 2021, when it was taken over by the Israelis for a price of 3 million euros, to date the company has had little, if any, contracted work to show – nothing like its glorious past – concerning the maintenance of a few dozen excavators.

The ambitious investment plan, which in its full development would reach €100 million and would concern the assembly or production of parts of military and other special type vehicles, which the Plasan – SK Group scheme had submitted to the Special Administration in its bid file, apparently still has not started to be implemented, comment market sources from Thessaloniki.

The takeover offer made to the two main shareholders is many times higher than the capital the current owners have spent on the acquisition of ELVO and on its operation so far.