At least 40 electricity and energy companies in Greece, other parts of Europe, Asia and the USA will be invited to take part in main power utility PPC’s bailout-required sale of lignite units, according to the utility’s sale plan.
More specifically, besides the local market players, invitations will be extended to companies in Poland, the Czech Republic, China, Japan and the USA, while firms in other markets may also be targeted.
PPC will need to move fast as the utility faces a series of demanding challenges and a strict deadline. The sale, to offer lignite units representing 40 percent of the state-controlled utility’s overall lignite capacity, needs to be completed by the end of 2018.
Between now and then, PPC’s overall task includes hiring consultants, establishing new companies representing the lignite units to be placed for sale, having these new companies approved by shareholders, and then staging international tenders.
A market test, to measure the level of investor interest, needs to be completed by the end of January. This stage will include updating potential investors on the sale procedure, sale package details, and will also allow for investor proposals on peripheral matters.
In an effort to avoid wasting any time, PPC intends to hire four consultants through fast-track procedures while the market test is in progress. The four consultants will be commissioned to offer their respective services for the spin-off process, evaluation of units, legal matters, and handling of the tenders.
Prior to the announcement of the sale’s international tenders, scheduled for May, PPC’s board will need to have made decisions concerning the split of units from the corporation’s nucleus and establishment of new companies as vehicles for the units to be offered for sale. Also, the outcome of the tenders will need to be approved by shareholders.
In addition, labor issues concerning the transfer of employees from overstaffed PPC units to other company divisions will need to be sorted out before potential buyers move in.