State to sell 13 pct of PPC

The government is selling up to 13.2 percent of Public Power Corporation (PPC), the electricity utility, in a move which could cut its stake to 71.3 percent from 84.5 percent. Up to 30.6 million shares will be offered to investors as the government seeks to raise funds to bring down public debt, among the highest in the eurozone. The sale will involve existing shares and global depository receipts. The offering was originally slated for October but was held back as a result of the sluggish stock market. A total of 23.2 million ordinary shares will be offered to investors. A greenshoe option allows for an additional 2.32 million shares, while an over-allotment option brings the total to 30.624 million. Greek retail investors will be entitled to a 3 percent discount on the offering price and will receive an additional share for every 10 owned after a six-month holding period. Up to 4.64 million shares will be made available to PPC employees, who will receive a 10 percent discount and be given additional shares if they hold onto their shares for a year. Holders of share convertible certificates can buy shares at a 5 percent discount. The new shareholders will be entitled to this year’s dividend. Investors can subscribe for shares between December 3 and 6. The indicative price range will be set after a bookbuilding process. Trading of the new shares is provisionally slated for December 12. UBS Warburg, Deutsche Bank, National Bank and Alpha Finance are lead coordinators and principal underwriters for the offering. The government sold off a 15.5 percent stake in December last year, raising slightly more than 460 million euros. PPC returned to profits only last year. It reported a 32.2 percent rise in nine-month profits this year. PPC shares fell by 1.07 percent yesterday to close at 12.92 euros.

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