Majority stake in water utilities returns to the state

A majority stake in Greece’s two water utilities that had been transferred to the country’s privatization agency (HRADF) in October 2011 is returning to the state, according to an inter-ministerial decision on Friday.

According to the government gazette which has already published the decision (614/22-2-2018), the state will reacquire 16,967,000 shares in Athens Water (EYDAP), which represents a 15.97 percent stake in the company, and 3,630,001 shares in Thessaloniki Water (EYATH).

The ministerial decision follows a Council of State ruling from 2014 which stated that the “alienation of the Greek state by the majority of the share capital of EYDAP is not constitutionally tolerated”. At the same time, it follows from the spirit of the same ruling that the State should lose the majority of the share capital of EYATH.

Greece’s third adjustment program foresees the transfer of EYDAP and EYATH shares to the state assets fund, the Hellenic Corporation of Assets and Participations (HCAP).