Greek and foreign investors reserved over PPC privatization

Despite the Greek government’s intention to privatize part of PPC, the public power corporation, prospective investors appear unconvinced that the plan will proceed – at least not in the near future.

Typifying this overall reservation, the head official of a local listed energy group, noted that: “We don’t make any comments on possible privatizations; there is no point in us offering responses every so often as to whether we are interested or not.” The official’s remark was prompted by shareholder questioning at a general meeting as to whether his firm would be interested in “Little DEI”, as the part-privatization of the public power corporation is being referred to.

Likewise, major foreign players seen as prospective investors in “Little DEI”, either independently or through partnerships with Greek energy-sector firms, are just as reserved. “We have reported back to our headquarters so often on the PPC privatization, that if we did so again [as a result of prospective new legislation], the move would most probably prompt laughter,” commented a representative of a major European energy firm.

According to well informed sources, the legislation’s imminent approval will not alter the overall restraint maintained by investors as, following ratification, a lengthy procedure expected to last several months will ensue, entailing the corporation’s break-up, the formation of a new corporate entity, personnel reappointments, and the staging of the tender.

Contrary to all this, if an alternate plan were pursued, allowing for the sale of a 17% stake through swift procedures that would oblige the reformed corporation’s new co-owner – also credited with the firm’s management – to sell “Little DEI”, then the overall investor interest could possibly increase. The government has flatly rejected rumors that have emerged about possible revisions to the privatization’s procedures.