Legislative revision ends saga for sale of PPC 17% stake

Power utility PPC’s long-running saga concerning the privatization of a 17 percent stake has ended following a legislative amendment submitted by the finance ministry to facilitate the process.

The step was supposed to have been taken in 2012, during the country’s first bailout agreement. The then-government ran out of time and ended up transferring the 17 percent stake to privatization fund TAIPED in 2014.

Two years later, in 2016, EESYP, the super privatization fund, was established, to which the Greek State transferred the other 34 percent stake it held in PPC.

From that period onwards, a variety of scenarios concerning the sale of PPC’s 17 percent came and went, covering the entire period of Greek bailouts.

In the post-bailout era, the current government wanted PPC, following its financial restructuring, to play a leading role in the energy transition. As a result, last autumn, a decision was made to proceed with an equity capital raise at PPC that would result in a total stake reduction to 34 percent for the two privatization funds, TAIPED and EESYP.

The recent equity capital raise resulted in EESYP, the super privatization fund, having a PPC stake of 23.8 percent stake, down from 34 percent, and TAIPED, the other privatization fund, having a 10.32 percent stake, down from 17 percent.