Cosco says OLP bid is ‘satisfactory’

Cosco says OLP bid is ‘satisfactory’

Sources from Cosco assure that the Chinese group’s bid for the majority stake in Piraeus Port Authority (OLP) – due to be opened on Tuesday – is “particularly satisfactory,” but still expect state sell-off fund TAIPED to ask for an improvement.

“Given the current domestic and international economic environment, as well as the concession contract that excessively favors the state, the offer is particularly satisfactory,” a senior Cosco source told Kathimerini, with the term “excessively” probably referring to the provisions and recent changes in the terms of the tender.

In any case, the Hong Kong-listed group expects TAIPED to demand an improved bid, as has become customary over the course of previous privatization projects. Like the rest of the market, Cosco believes it is the only bidder for the 67 percent stake in OLP, even though TAIPED has not yet confirmed or refuted that.

TAIPED sources stress that the aim is to maximize the price attained and the investment the preferred bidder will undertake to implement. Although the bid’s amount will not be published, Kathimerini understands that it provides for investment of 296 million euros in the first five years and another 50 million over the next three, including improving OLP’s Terminal 1.

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