The board at main power utility PPC has endorsed the split-and-sale plan for subsidiary IPTO, the power grid operator, paving the way for a major cash injection into the parent company’s coffers. This decision will now need to be approved at a PPC shareholders meeting scheduled for May 23.

According to information provided during yesterday’s PPC board meeting, the utility stands to receive 295.6 million euros for the transfer of a 25 percent share of IPTO into a new holding company, as part of this equity transfer from the utility to the Greek State.

The 295.6 million-euro payment PPC expects to receive for the transfer from the Greek State promises to offer relief for the utility, troubled by a hefty unpaid receivables amount.

A recently ratified energy ministry amendment for the IPTO split and sale demands an equity capital increase for the new IPTO holding company reflecting the value of IPTO’s 25 percent.

IPTO’s split-and-sale plan also includes an agreement with China’s SGCC (State Grid Corporation of China) for the latter’s acquisition of a 24 percent stake. The Greek State is expected to end up with a 51 percent stake of IPTO.

Also yesterday, a PPC union voted against an intention by the utility to eliminate an administrative seat held by the Economic and Social Council of Greece (OKE) on the utility board.

OKE’s representative on the PPC board, Giorgos Bitzas, challenged PPC’s chief executive Manolis Panagiotakis to clarify whether this intention is a targeted at Bitzas, personally, or OKE as a whole. The PPC chief denied the plan to is personally linked to Bitzas. He attributed the intention to a wider corporate change at PPC.

OKE’s head official, Giorgos Vernicos, forwarded a letter to PPC protesting the plan. The final say on the matter will be decided by shareholders at next month’s PPC general shareholders’ meeting.