ECONOMY

Cosco adds another 16% to its stake in Piraeus Port

cosco-adds-another-16-to-its-stake-in-piraeus-port

Greece’s privatizations agency transferred shares corresponding to a 16% stake in Piraeus Port Authority (OLP) to Chinese port operator Cosco Shipping after an amendment to a previous concession agreement, it said on Thursday.

Last month Greek lawmakers amended a deal with Cosco allowing it to raise its stake in Greece’s biggest port of Piraeus, paving the way for Greece to secure a major investment.

Under a 2016 privatization deal, Cosco Shipping bought a 51% stake in OLP for €280 million and committed to mandatory investments worth about €294 million over five years to buy an additional 16% stake.

The Hellenic Republic Asset Development Fund (TAIPED) said it transferred the shares on the Athens Stock Exchange.

Cosco Shipping paid €88 million for the 16% stake plus €11.87 million in accrued interest and a letter of guarantee for €29 million.

Piraeus has grown into a major transshipment hub for goods destined for Mediterranean and Black Sea ports since Cosco took over its container operations in 2009 and upgraded its infrastructure. [Reuters]