BUSINESS

Privatization of Elliniko gets moving

State privatization fund TAIPED approved on Monday the text of the contract for the 100 percent sale of the special purpose company that will operate the old Athens airport plot at Elliniko, with the aim of reaching an agreement for the utilization of the plot within the first quarter of the year.

The draft contract will be delivered to the three short-listed investors, Elbit, Lamda Development and London & Regional Properties, in the next few days. They will have a few weeks to respond by submitting a binding offer for the entirety of the shares of Elliniko SA, likely to be by end-February or early March.

While the valuation of the offers will not take long, based on pass/fail criteria and with the price offered being the ultimate decider, the completion of the agreement with the payment of the price and the transfer of the shares to the preferred bidder will take much longer, with some observers saying it could take up to two years. Given the precedent of the International Broadcasting Center (IBC), for which the issuing of the development plan took more than one year, it is certain that the equivalent presidential decree will take even longer.

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