While due diligence procedures are being carried out by potential acquirers ahead of a 66 percent sale of IPTO – Greece’s Independent Power Transmission Operator, locally referred to as ADMIE – one particular condition in the tender could affect proceedings. At present, all four bidders, Terna, SGCC, Elia, and PSP, appear to be maintaining their interest.
The case in point concerns a condition stating that applicants will not be required to meet the technical criteria listed in the tender, provided that the buyer will commit to transferring full control of the operator’s administration to the Greek government for at least five years.
Although the tender explicitly states that any company intending to acquire a 66 percent stake in IPTO will need to possess a proven track record in the sector, or take part in a tender as part of a consortium with a company that possesses experience, the specific paragraph also allows for fund management enterprises without any background in electricity networks to take part. In other words, they could acquire a 66 percent stake in IPTO as long as they transferred full control of the operator’s management to the Greek state for five years.
One fund, the Canadian enterprise PSP, is taking part in the international tender.
Regardless of these concerns, Italian firm Terna, considered the favorite at present, as well as Chinese giant SGCC and Belgian operator Elia, are expected to battle out the tender until its very end. This would intensify the element of competition and increase the likelihood of achieving an extremely satisfying price for the deal.