BUSINESS

PPC gets two offers for ADMIE stake

TAGS: Energy, Privatizations

Greek power utility PPC has received two binding bids for a 24 percent stake in power grid operator ADMIE, an Energy Ministry source told Reuters on Friday.

The short list was Italian power grid Terna jointly with infrastructure fund F2i, France’s RTE International and China’s State Grid International Development.

The deadline for the submission of bids was Friday afternoon.

Under Greece’s bailout agreement struck in 2015, PPC, which is 51 percent state-owned, must either sell its stake in ADMIE or fully privatize the grid by next year.

Under a timetable approved by Parliament, a preferred bidder for ADMIE has to be chosen by October 31 and the deal is expected to be concluded in the first three months of 2017.

“It was a very significant success for the government... discouraging those who have been hoping for the opposite,” said the ministry official who declined to be named.

ADMIE, which operates more than 11,000 kilometers of high-voltage power cables in Greece, had earnings before interest, tax, depreciation and amortization (EBITDA) of 155 million euros last year.

It had a regulated asset base of 1.4 billion euros and a total debt of 490 million euros.

[Reuters]

Online