Talks regarding the sale of DESFA to SOCAR collapse

1 December 2016
267 Views

The Ministry of Environment and Energy officially announced that the talks with Azerbaijan’s energy giant SOCAR for the sale of national gas transmission system operator (DESFA) have collapsed

“In the last months, the government has been in ongoing talks with representatives of the companies SOCAR and Snam for the sale of 66% of DESFA. The atmosphere in the talks was constructive. Nevertheless, the offer submitted on the part of the prospective buyers regarding the reduction of the sale price (repayment in installments) was legally impossible and would have invalidated the tender” a Ministry announcement said.

Sources suggest that the Greek government will decide the next steps collectively in the coming week.This leaves open the possibility of a new privatization tender, since several European companies had shown strong interest in DESFA during the previous tender process.

The completion of the previous tender stumbled on objections raised by the European Commission’s competition directorate, which said that SOCAR’s stake in DESFA should be under 50%, rather than the 66% package of shares originally on offer. This demand was met by the Greek side, however SOCAR then demanded to pay less than the 400 million euros it initially offered, due to the reduction in the operator’s revenue.

The Ministry’s announcement further noted that alternative proposals suggested by the prospective buyers to improving the value of the offer through guarantee mechanisms were examined, but also proved impossible to implement under Community law. “The government’s proposals sought to improve the financial position of the company, on the basis of increasing the recoverable difference of past years in the framework of existing legislation. These proposals were not accepted, with the result that the talks were concluded” it stated.

You may be interested

Lotto results: Wednesday 20 June 2018
GREECE
shares18 views
GREECE
shares18 views

Lotto results: Wednesday 20 June 2018

Panos - Jun 20, 2018

The winning numbers from the Lotto draw on Wednesday 20 June are as follows:

Mykonos! The island where some bread slices cost 28 euros!
GREECE
shares24 views
GREECE
shares24 views

Mykonos! The island where some bread slices cost 28 euros!

makis - Jun 20, 2018

A Spanish bakery claims to sell the world’s most expensive bread in the world at €106 a loaf. OK, that…

Panathinaikos FC agree to terms with coach George Donis
GREECE
shares21 views
GREECE
shares21 views

Panathinaikos FC agree to terms with coach George Donis

makis - Jun 20, 2018

Manager George Donis will be at the helm of Panathinaikos FC, after the two parties agreed on terms on Wednesday.…

Leave a Comment

Your email address will not be published.