DEPA to be broken up into two parts

DEPA to be broken up into two parts

Energy Minister Giorgos Stathakis on Tuesday announced the start of the privatization process for Public Gas Corporation (DEPA), aiming for its completion in the first quarter of 2019. The company will first be split into two parts, one commercial and the second comprising its infrastructure.

Speaking on state broadcaster ERT, Stathakis confirmed that the government’s agreement with its creditors for DEPA’s sell-off had been sealed a day earlier: “It provides for splitting DEPA into two: DEPA Infrastructure, which will have all of the country’s networks and international projects, and that will remain under state control, and the commercial part, of which the state will only retain a 15 percent stake.” The process will begin in September, he added.

The state will control a 65 percent stake in DEPA Infrastructure, the same as its current holding in DEPA. If fellow stakeholder Hellenic Petroleum decides at a later date to divest from this portfolio, there is an option for the sale of a 14 percent stake from the the state’s holding to a third party so as to allow an investor to own up to 49 percent of shares.

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