* York to buy stake in Greek construction group
* US firm will also subscribe to a 5-year bond issue
* Move a vote of confidence in Greece's recovery
By Angeliki Koutantou
ATHENS, Nov 4 U.S investment firm York Capital
Management will invest 100 million euros ($134.87 million) in
Greece's construction group GEK Terna, acquiring a 10
percent stake in the firm, the two companies said in a joint
statement on Monday.
It is the fourth Greek bet by overseas investment funds this
year, as twice bailed-out Greece lures investors as it is
expected to recover from a six-year recession.
York Capital will acquire a 10 percent stake in GEK Terna by
subscribing to the firm's planned share capital increase and
another 3 percent stake in GEK Terna's energy unit Terna Energy
, the two companies said in a statement.
York Capital will also fully subscribe to a five-year bond
issue by GEK Terna at 2.50 euros a share. GEK Terna shares
closed at 3.24 euros a share on Friday.
"The investment will contribute to GEK Terna's efforts for
ongoing growth and implementation of the group's investment plan
and reflects a vote of confidence for the recovery of the Greek
economy," the statement said.
York Capital manages about $18 billion of funds, according
to the statement.
GEK Terna, one of Greece's biggest construction groups with
a project backlog of 3.1 billion euros, has expressed interest
to buy Greece's state railways in a possible joint bid with
Russia's train monopoly RZD,. Its
energy unit Terna Energy runs 1,080 megawatts of installed
Greece's stock market has gained 30 percent this year,
making it one of the world's strongest performers after the
country escaped chaotic default and possible exit from the euro
The stock market will be reclassified as an emerging market
by MSCI later in the month, attracting investors who are betting
on Greece's recovery and are managing funds benchmarked to the
Canadian investment fund Fairfax Holdings acquired
last month a 5 percent stake in Greek industrial group
Mytilineos and committed to raising its holding in
property developer Eurobank Properties .
U.S hedge fund Third Point agreed in May to buy a stake in
Energean Oil & Gas, a small Greek oil producer, for $60 million.