Talks regarding the sale of DESFA to SOCAR collapse

1 December 2016
883 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

Mitsotakis: We expect the extension of our EEZ demarcation agreement with Egypt soon
POLITICS
shares15 views
POLITICS
shares15 views

Mitsotakis: We expect the extension of our EEZ demarcation agreement with Egypt soon

makis - Jun 21, 2021

The Greek Prime Minister, Kyriakos Mitsotakis, is in Cairo, for his official visit to Egypt. Kyriakos Mitsotakis was received at…

Two Greek islands in best-hidden of the Mediterranean: Telegraph
GREECE
shares49 views
GREECE
shares49 views

Two Greek islands in best-hidden of the Mediterranean: Telegraph

Panos - Jun 18, 2021

British media outlet Telegraph included the Greek islands of Karpathos and Alonissos in its top 20 holiday destinations in the…

Coronavirus Greece: 519 new cases, 321 intubated, 16 deaths
GREECE
shares50 views
GREECE
shares50 views

Coronavirus Greece: 519 new cases, 321 intubated, 16 deaths

Panos - Jun 18, 2021

Greece announced that the new laboratory-confirmed cases of coronavirus recorded in the last 24 hours are 519, of which 2…

Leave a Comment

Your email address will not be published.