Greek State, Latsis group working on 3 issues for ELPE agreement

Though the government, as the Greek State’s representative, and the Latsis corporate group, co-shareholders of ELPE (Hellenic Petroleum), are expected to sign an agreement early next week that will enable TAIPED, the state privatization fund, to offer a 51 percent stake and management rights of the petroleum firm to prospective buyers through an international tender, three issues are still being discussed.

The Greek State, which currently holds a 35.5 percent stake of ELPE and Paneuropean Oil, a member of the Latsis corporate group, which controls a 45.47 percent stake, are holding continual talks to resolve these matters.

The two sides need to decide on their managerial roles, as prospective minority shareholders. They must also agree on how many members of the new board they will eeach be entitled to appoint. Their future veto rights also need to be determined.

The Greek State and Paneuropean Oil plan to each retain respective 15 percent stakes in ELPE, meaning the former will offer approximately 20 percent of its existing 35.5 percent stake and Paneuropean Oil will offer about 30 percent of its 45.47 percent stake.

Once the two sides have signed an agreement, TAIPED will be able to immediately announce an international tender. Its terms are expected to shape the turnout of interested investors.