The government has set a 49 percent limit for the planned privatization of distribution network operator DEDDIE/HEDNO but the stake to be offered may end up being smaller.
A DEDDIE/HEDNO stake of up to 49 percent and increased rights for investors will be placed for sale, while the operator’s majority and management will remain under the control of power utility PPC, the operator’s parent company, the group’s chief executive Giorgos Stassis noted in an interview published by Greek daily Ta Nea over the weekend.
The size of the DEDDIE/HEDNO stake to be offered to investors will, on the one hand, depend on the amount of cash required by PPC to resolve financial matters for a path towards recovery, and, on the other, the ability of potential buyers to meet the price-tag demands of a major privatization.
DEDDIE/HEDNO’s assets are estimated to be worth 3.2 billion euros, meaning a 49 percent stake should cost potential buyers over 1.5 billion euros.
PPC has commissioned Goldman Sachs and Eurobank as the privatization’s consultants. The power utility’s administration would like to find a DEDDIE/HEDNO buyer by the end of the year.
An ambitious ten-year business plan for DEDDIE/HEDNO, one reflecting the lofty demands of the National Energy and Climate Plan, is being prepared for presentation to RAE, the Regulatory Authority for Energy, in about two months’ time.
DEDDIE/HEDNO will face the challenge of developing projects worth billions by 2030, including new interconnections and nationwide installation of smart meters.