Cosco set to wrap up OLP deal in days

Cosco set to wrap up OLP deal in days

In the next few days Chinese shipping firm Cosco is expected to complete the process of acquiring a majority stake in Piraeus Port Authority (OLP) for a total of 368.5 million euros and with the aim of turning the port into the biggest in the Mediterranean and one of the biggest in Europe.

Cosco is due to pay 280.5 million euros to the Hellenic Republic Asset Development Fund (TAIPED) to secure a 51 percent stake in OLP. It will also deposit another 88 million euros in an escrow account to secure another 16 percent in the company. The extra shares will be transferred when Cosco completes the investment it has committed to as part of the deal. The Chinese firm recently indicated that it will invest 650 million euros, rather than the agreed 350 million, in Piraeus.

Once the transfer of the majority stake has been completed, the current executive board is expected to resign so that a new one can be appointed. The new members will be appointed subject to an agreement between Cosco and TAIPED, which will continue to own 23 percent of the port authority until the Chinese giant obtains the 16 percent share that will be set aside.

Sources told Kathimerini that at no point during this process will a general meeting of OLP’s shareholders be required.

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