Public Power Corporation shareholders approve sale of 25 pct of ADMIE

A Public Power Corporation (PPC) extraordinary general shareholders’ meeting on Tuesday approved a plan to sell a 25 pct equity stake in ADMIE -the Independent Power Transmission Operator- to the state company DES ADMIE for 295,608,000 euros.

The transaction is expected to be completed by mid-June. State Grid, a Chinese energy group, has won an international tender to buy 24 pct in ADMIE. Following completion of the transaction, the Greek state will own 51 pct of the operator’s equity capital.

Manolis Panagiotakis, chairman and CEO in PPC, said the sale of ADMIE, despite the complex structure of the transaction, was completed in a record-time as agreed with the country’s creditors.

The general shareholders’ meeting also approved changes in PPC’s statute, paving the way for expanding PPC’s activities in financial services.

PPC is preparing to present its recommendations for the sale of lignite unit electricity power stations -accounting for 40 pct of electricity production- with the aim to reach an agreement in June with the stat and creditors over the asset portfolio.

PPC is also insisting on a plan to create joint ventures with private investors in lignite production and the sale of a subsidiary in the retail energy business with a customer portfolio of arour 400-450,000 customers or 7.0 pct of the market, Panagiotakis said. Speaking to reporters, PPC’s chairman and CEO said that provisions of the memorandum were not written on stone and expressed the hope that there would be a coordination with the Energy ministry ahead of negotiations.

He said that a solution offered by PPC ensured a smooth opening of the energy market compared with lignite and hydroelectric production auctions currently underway. Panagiotakis said a tender for the sale of the retail subsidiary company would be launched in June-July and noted that among incentives to be offered -to be attractive to private investors- would be a guarantee of energy prices for a period of 2-3 years.

He stressed that the “basket” of lignite units to be sold would be agreed based on business and financial criteria. He insisted on a proposal that PPC would forge joint ventures with private investors in upgrading or building new lignite production units with the aim to reduce PPC’s market share.

Panagiotakis also insisted on a plan to build a second unit in Melitis, Florina, in partnership with Chinese company CMEC and noted that this could be done only if the first unit of the power station would not be included among PPC’s lignite units for sale.