Agricultural and DEPA sell-offs moving forward
Efforts to privatize state-controlled Agricultural Bank and restructure it into a more streamlined financial institution are in progress, the government said yesterday as it released a review of the sell-off process which kicked off late last year. It also confirmed plans to offload up to 35 percent of gas company DEPA to a strategic investor. Agricultural Bank has retained the National Investment Bank for Industrial Development and Citibank to help it search for a strategic investor as the government seeks to cut its 85-percent holding to a 35-percent stake. Despite the State’s eagerness to shed majority control, Agricultural Bank’s quest to date has been fruitless, a fate similar to other companies the government has been trying to privatize over the last few years. Rumors of a heavy load of non-performing loans incurred over the years have offset the bank’s efforts to restructure its operations. Another state-controlled bank, General Bank, is also on the lookout for a strategic partner. While five banks, foreign ones among them, have expressed interest, the fact that the Armed Forces Fund is a significant stakeholder could prove to be a stumbling block at the last hurdle. Procedures to rid Agricultural Bank of its non-core activities are also moving forward, the government said. It recently advertised the sale of a stake up to 100 percent in dairy producer Agno. The response has been more than satisfactory, the government said yesterday, noting that 10 prospective candidates have obtained the file on the dairy producer. The deadline for non-binding bids is April 25. Another dairy producer, Dodoni, is currently preparing for a flotation on the Athens Stock Exchange, with 25 percent of its stock to be offered to investors. Agricultural cooperatives are also encouraged to take up stakes in the company as well as in dairy producer Rodopi and food producer Sevath, the latter two subsidiaries of Agricultural Bank located in northern Greece. Regarding Hellenic Duty-Free Shops, in which Agricultural Bank holds a 60-percent stake, seven bidders have showed interest. They have until May 13 to submit non-binding bids. PricewaterhouseCoopers and Agrotiki Asset Management are advising the bank on the sale. News of strong investor interest sent the company’s shares soaring by 7.24 percent to 7.70 euros yesterday. In the meantime, the long-talked-about sell-off of DEPA, the state-controlled gas company, is about to kick off after the ministerial committee on privatization gave the green light. The tender is expected to be published shortly. The State holds a 65-percent stake in DEPA while Hellenic Petroleum holds a 35-percent share with an option to boost this to 100 percent by 2013. Electricity utility Public Power Corporation, however, has indicated its interest in gaining a foothold in DEPA as it seeks to diversify its operations.
