The main power utility PPC’s 51 percent stake held by the Greek State is expected to be transferred to the country’s new privatization superfund within the next few days, along with 18 other utilities.
This mass transfer, a bailout requirement, was supposed to be executed by the end of 2017 but the submission of a related legislative amendment to parliament was delayed.
Pundits informed that a multi-bill facilitating the transfer of all these utilities will soon be submitted to parliament for ratification and apply retroactively as of January 1.
The transfer of PPC’s 51 percent to the new privatization superfund, to be comprised of various subsidiaries, including a Public Holding Company (EDIS), does not mean that the power utility’s restructuring will commence immediately. The presence of minority shareholders hailing from the private sector limits the action that may be taken.
Even so, certain changes will need to be made. These include a revised business plan to be based on a strategic plan to be provided by the superfund.
The changes could also require PPC to publish balance sheets every three months as well as more challenging demands, including cost reductions and staff redistributions.
Also, the board at PPC, along with those of all utilities to be transferred to the superfund, will be subject to thorough assessments. If deemed to be underperforming, boards will be replaced. The tenure of PPC’s current chief executive, Manolis Panagiotakis, expires on April 7.