PPC lignite sale regaining pace, 4 of 5 candidates interested

Four of five investment teams that submitted first-round expressions of interest for the main power utility PPC’s sale of bailout-required sale of lignite mines and power stations appear to have sustained their interested now that the disinvestment procedure is regaining speed following the summer slowdown in August.

Investors have actively sought sale-related information in the virtual data room established for the disinvestment ahead of a series of separate interviews, planned to begin next week, with PPC officials for further clarification of the assets up for sale, including technical and financial details. Interested parties are expected to submit binding second-round offers in October.

Czech firm EPH (Energeticky a Prumyslovy Holding) appears to have retreated and will most likely not take part in the upcoming series of meetings. Until now, EPH representatives have yet to request any meeting with PPC officials.

On the contrary, Seven Energy, another Czech firm that emerged in the first round, has stationed a representative in Athens, seems very interested, and has joined forces with local powerhouse GEK Terna.

Investors still need to gain further information as the two companies founded to offer two separate sale packages, respectively representing PPC lignite units in Greece’s north and south, did not exist prior to this sale’s launch. As a result, prospective buyers need to be particularly careful and seek further details on corporate, legal and sale matters.

PPC’s chief executve Manolis Panagiotakis is not expected to participate in the power utility’s series of forthcoming meetings with investors.

Despite certain reservations as a result of lignite’s indefinite future in Greece’s energy mix, all other four investment teams appear interested in PPC’s two sale packages, representing 40 percent of the power utility’s overall lignite capacity.

Besides the GEK Terna-Seven Energy partnership, the Copelouzos group has been joined by China Energy (Beijing Guohua Power), while the Mytilineos group and ElvalHalcor also emerged in the first round.