China’s State Grid to buy 24% stake in ADMIE
China’s State Grid is a preferred strategic investor to buy a 24 percent stake in the Greek electricity grid operator ADMIE, announced Public Power Corporation (PPC) board.
The Chinese company offered EUR 320 million to buy a minority stake in ADMIE which is the highest offer for the asset, so this is the final decision of PPC. The British multinational banking and financial services company Barclays stated that the price offered by State Grid was fair while the tender procedure had been objective and transparent, Greek agencies reported.
The final approval of the sale will be given during a general shareholders’ meeting scheduled for November 24. The Greek power company PPC has been controlled by the state and it was required to sell its stake in ADMIE or to fully privatise the grid by next year, according to the terms of Greece’s international bailout. The deal between PPC and China’s State Grid is expected to be concluded in the first three months of 2017, according to the timetable approved by the Greek Government.
Greece received two binding bids for the 24 percent stake in ADMIE sale. Besides China’s State Grid International Development, the Italian power grid TERNA submitted a bid too, but its proposal was lower.
Boosting ties between Greece and China
Greek Prime Minister Alexis Tsipras visited China in July and the EUR 320 million worth deal is seen as a part of boosting ties between two countries. It comes shortly after PPC signed an initial agreement with China Machinery Engineering Corporation (CMEC) to build a EUR 1 billion power plant in Greece in September. Earlier this year Chinese shipping and port giant China Cosco Holdings Co. bought a 51% stake in Greece’s largest port Piraeus.
State Grid International Development is a subsidiary of State Grid Corporation of China (SGCC) established in June 2008. From 2012 the company serves as a professional platform which executes overseas electric power asset investments and operations for SGCC. Besides supplying with electrical energy over 1.1 billion people in 26 provinces, autonomous regions and municipalities in China , State Grid also owns and operates overseas assets in the Philippines, Brazil, Portugal, Australia, Italy and more.