ELPE concession project reaches final stages

Preparations for the privatization of Hellenic Petroleum (ELPE) are at an advanced stage, with the two main stakeholders – the Greek state and Paneuropean – having agreed on the stakes they will concede to the strategic investor and exchanged proposals for the shareholder agreement.

The two stakeholders will each maintain a 15 percent share in ELPE. They will concede a stake amounting to 51 percent as well as the management of the oil company to the preferred bidder, through a tender by state privatizations fund TAIPED. That stake will consist of 20 percent from the state’s stake and 31 percent from the Latsis Group, which owns Paneuropean.

The shareholder agreement proposals are now on the negotiating table, before a definitive project to be presented to candidate investors is agreed. The state’s proposals were sent to Paneuropean by Energy Minister Giorgos Stathakis last Wednesday, according to sources.

What the Latsis Group is seeking to secure through its proposals is the operation of ELPE on the basis of clear corporate governance rules. Paneuropean is eager to ensure that, despite the state holding on to a 15 percent stake, there will be a strong framework of governance at ELPE to prevent any interventions in internal procedures, such as hirings, procurements etc. It is therefore proposing the hiring of an independent consultant to point to specific measures.