ECONOMY

GEK Terna puts off creation of subsidiary

gek-terna-puts-off-creation-of-subsidiary

Listed group GEK Terna is postponing until after the elections – not only the European polls this month but probably the general elections later this year too – the creation of a subsidiary in the sector of state project concessions.

Sources say that apart from the procedures required for the process, the company is seeking to extend its timetable as the establishment of the new firm will require finding the capital needed for participating in concession contracts.

The company is exploring various options to this end, from issuing a corporate bond to the sale of a stake to a foreign investment fund. That fund could be Dutch Reggeborgh, which by the end of the year will control around 30 percent of the GEK Terna group.

Until the political dust settles, group officials say, GEK Terna will focus on the creation of a company to undertake the project of the new Iraklio airport at Kastelli, which is due to be ratified on Tuesday by the competent parliamentary committee.