The signing of the agreement for the transfer of the majority stake in Piraeus Port Authority (OLP) to China’s Cosco Pacific is scheduled for April 8, according to a senior source from the state privatization fund (TAIPED) that will sign the deal on behalf of Greece.
Along with the sale deal, TAIPED and Cosco will sign a shareholders’ agreement that will determine the relations between the two main stakeholders, as the state will retain a significant share of voting rights for at least the next five years.
The total value of the agreement for the acquisition of Piraeus Port is EUR 1.5 billion and it includes, besides the aforementioned amount, investments amounting to EUR 350 million to be made in the following decade, as well as expected revenues, following the concession agreement valid until 2052, of EUR 410 million.
The transaction was divided into two stages. In the first stage, Cosco will pay to Greek privatisation agency – HRADF the amount of EUR 280.5 million, and becomes the holder of 51% stake in PPA. After a period of 5 years, during which the new owner must meet the requirements of the purchase agreement, including the implementation of the investment projects, Cosco will pay an additional amount of EUR 88 million and increase its stake to 67% (phase II).
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