Another serious “brand name”, particularly known to the general consumer public, will be found off the stock market in the coming months, with the listed companies that have been delisted from 2000 to date exceeding 300.
The decision of the Gerardos family to delist Plaisio Computers from the Stock Exchange, offering a high premium of 44.5%, in order to regain full control of the company, is the latest case of “draining” of the domestic stock market.
Unreasonably low valuation
The unreasonably low valuation of the company based on the course of the stock despite its very good financial performance, especially in recent years, is one of the main reasons that led George and Kostas Gerardos to this decision.
“The valuation, instead of increasing, decreased” founder and president of the company Mr. Giorgos Gerardos told OT, who together with his son, Kostas, CEO and vice president of the company, control a total of 82.18% of the equity capital and voting rights.
“We don’t need funds”
“At the same time, the stock exchange as a source of liquidity is not of interest to us, we do not need capital, as we have a strong fund,” adds the emblematic businessman, explaining the second reason for filing the optional public offer.
It is noted that the company, which made its debut on the Main Market of the ATHEX on March 15, 1999, has almost 40 million euros in cash and 12.2 million euros in borrowings, according to the data of this year’s 9th month.
At the same time, based on the valuation report, drawn up by Euroxx Securities and which accompanies the public offer, the offered price (4.58 euros per share when the current price of Plaisio on the ATHEX board is 3.15 euros) values 100 % of the company just over 100 million euros, the same amount as its own capital.
The company’s equity in the 9th month was 102 million euros and the capitalization was 69 million euros.
Lack of flexibility
In a particularly difficult environment that “changes very quickly”, the expensive restrictive regulatory framework for listed companies – which according to Mr. Gerardos rightly exists – does not leave much room for flexibility.
“In order to grow, you must be able to make immediate decisions with a long-term horizon and not limit yourself to a quarterly or six-month horizon,” Mr. Gerardos points out, describing the third reason for Plaisio Computers’ exit from the ASE.
Long term planning
With an eye on the “big picture”, the main shareholders of Plaisio Computers have already launched a long-term plan for the next – many years – of the company, emphasizes the founder, describing the fourth reason/reason for “farewelling” the Stock Exchange.
The Gerardos family will have to pay 18 million euros (3,932,952 shares, or 17.82% X 4.58 euros) to acquire 100% of the company and request delisting from the AX.
It is noted that in the 23 years of his stock market “career” he has only shown profitable years and has distributed dividends of the order of 70 million euros.
With 80,000 borrowed drachmas
Ever since the young Polytechnic student Giorgos Gerardos, with 80,000 drachmas (235 euros) on loan, created his first store with design and office supplies in a space of 12 sq.m. on Stournari Street, until today, when Plaisio has managed to become the top of mind choice for the Greek consumer in the field of technology, 52 years have passed
In fact, Plaisio Computers would not exist today if Giorgos Gerardos had chosen to become a doctor (before entering the Polytechnic he had switched to medicine).
How it all started
The conception of the idea for the creation of Plaisio was born in Thessaloniki, when, being a student, the founder of the company, discovered that the prices of design items in the co-capital were dramatically cheaper compared to the Attica market.
Seeing it as a business opportunity and having now transferred to Metsovio, he borrows and opens a shop next to the School of Civil Engineering.
By trying to source directly from manufacturers, it bypassed middlemen and managed to provide much lower prices on products used by civil engineers, architects and related industries.
This model was unprecedented for that time in 1969.
From the phone of KPSM
Despite the difficulties (in 1976 he managed Plaisio, a small and medium-sized business with 13 employees, from the only telephone of his military unit’s recreational area in Evros, where he served his term) and the growing competition, George Gerardos continued to build what calls “capital customer loyalty”.
The firsts
This was followed by the entry into IT in 1985, the opening of the mail-order business with the first Greek catalog and the innovative department for direct sales, the first technology site in Greece with next day delivery of products, the entry into categories such as mobile telephony and televisions , the investments in state-of-the-art logistics centers, to the “entry” into the home appliances market and the management of the health crisis, which it approached “aggressively”, with an increased budget for marketing and commercial activities, during the period when the demand was extremely doubtful.
Half a century after the “shop” in the… “Silicon Valley of Exarchia”, Plaisio with 24 physical stores throughout Greece as well as an e-shop shows a record turnover of 453 million euros and an EBITDA of 20 million euros.
