Gov’t to seek TAIPED removal for PPC in exchange for sales

The government intends to try and have a 17 percent stake of the main power utility PPC transferred from the TAIPED (State Privatization Fund) list to a wider superfund - a move that could offer this stake temporary protection from privatization - in exchange for acceptance of a plan demanded by the country’s lenders for the sale of PPC units.

Transfering the 17 percent stake of PPC to the superfund would delay ths stake’s privatization until further notice, whereas its current inclusion on the TAIPED list represents a countdown towards certain privatization.

The Greek State would lose its 51 percent majority control of PPC should this 17 percent stake be privatized.

Acceptance by the lenders of the government plan for a transfer of PPC’s 17 percent from the TAIPED list to the superfund would maintain the Greek State’s 51 percent control of the utility, even if downsized following the sale of units.

It is believed that investors would not be drawn to PPC’s 17 percent if this stake were to be placed for sale right now as the vague conditions surrounding the utility would act as a deterrent. Investors require further clarity on the business units to remain with PPC and those to be sold, as well as on the future shape of market conditions.

This presumed lack of interest amid the current conditions could offer unanticipated support to the government’s plan for a transfer of PPC’s 17 percent to the superfund.

Though the inclusion of PPC’s 17 percent on the TAIPED list is based on an older agreement between the government and lenders, this has yet to be endorsed by KYSOIP, the Government Council for Economic Policy, meaning that leeway for revisions, including the transfer of PPC’s 17 percent to the superfund, still exists.