PPC ap­proves ADMIE spin-off

Kathimerini English - - Focus -

Share­hold­ers of Greece’s elec­tric­ity util­ity Pub­lic Power Cor­po­ra­tion (PPC) ap­proved late on Tues­day the trans­fer of a 51 per­cent stake in the power grid op­er­a­tor ADMIE, part of a spin-off scheme, which is a ma­jor term in Greece’s bailout pro­gram. Un­der a leg­is­lated scheme aim­ing at keep­ing ADMIE un­der state con­trol, PPC will sell a 24 per­cent stake to China’s State Grid for 320 mil­lion eu­ros and set up a spe­cial ve­hi­cle to trans­fer a cost-free 51 per­cent stake to the state and ex­ist­ing pri­vate share­hold­ers. “The ex­tra­or­di­nary PPC share­hold­ers meet­ing ap­proved the pro­ce­dures in or­der to con­clude ADMIE’s spin-off,” the En­ergy Min­istry said in a state­ment. ADMIE is fully owned by Greece’s state-con­trolled elec­tric­ity util­ity PPC and Athens has agreed to con­clude the plan by the end of March or fully pri­va­tize the grid this year. Share­hold- ers were due to ap­prove the stake trans­fer last Thurs­day but their meet­ing was post­poned un­til Tues­day af­ter Greece’s four big­gest banks ex­pressed con­cerns over the plan. Na­tional Bank, Pi­raeus Bank, Al­pha Bank and Eurobank, which have ex­tended a 2.2-bil­lion-euro syn­di­cated loan to PPC, sent a let­ter to PPC and the Fi­nance Min­istry last week, say­ing that the sale of the 51 per­cent stake without any pro­ceeds for PPC would harm the util­ity’s fi­nances. Af­ter talks between all par­ties in­volved, the banks sent another let­ter to PPC and the Fi­nance Min­istry on Tues­day say­ing they were ex­am­in­ing pos­i­tively PPC’s ser­vic­ing of the loans af­ter be­ing given guar­an­tees worth at least 300 mil­lion eu­ros.

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