The main power utility PPC’s recently failed bailout-required sale of lignite units is headed for a relaunch rather than an extension, which will enable the entry of new candidates, as well as a market-based evaluation rather than a book value estimate of assets, as was the case with the first attempt, ongoing negotiations between the energy ministry and the European Commission are strongly indicating.
Bids submitted by participants in the initial sale attempt are expected to be taken into account for the new evaluation.
The Mytilineos group had offered 25 million euros for PPC’s Meliti unit while a Greek-Czech bidding team comprising Gek Terna and Seven Energy submitted a 103 million-euro offer for Meliti and two Megalopoli units.
However, this latter offer was rejected as it included a profit-and-loss sharing condition that had not been included in the sale’s terms. Authorities are now looking at including a profit-and-loss sharing mechanism to the new sale’s terms. Also, the amount offered by Gek Terna and Seven Energy is expected to be adopted as a lower limit.
Energy ministry officials are aiming for a finalized agreement by this Thursday’s Eurogroup meeting of eurozone finance ministers. PPC’s lignite disinvestment is a key bailout commitment that remains pending. A one-billion euro tranche for Greece depends on this sale procedure.
PPC’s chief official Manolis Panagiotakis believes that a renewed sale attempt cannot take place sooner than May, given the preparations required.
Greek officials are hoping for a sufficient time period that will enable the completion of a staff reduction demand made by prospective buyers for the sale package’s units. Local authorities also hope PPC’s lignite units will qualify for CAT remuneration by May.