Main power utility PPC chief executive Manolis Panagiotakis has confirmed a new government plan for subsidiary firm IPTO, the power grid operator, entailing a stock split solution of the parent company, as was disclosed by energypress yesterday.
Talking to journalists following an extraordinary shareholders meeting yesterday, Panagiotakis noted that a PPC-based stock split proposal for the creation of a new IPTO company reflecting PPC’s equity make-up, which would then adopt the utility’s fixed assets, represents the government’s latest proposal to avoid the operator’s privatization.
Through such a procedure, PPC would surrender control over the new IPTO firm, as lenders have demanded, the PPC head official explained.
The Greek state would hold a 51 percent equity share in the new IPTO corporate entity carrying PPC’s fixed assets if this proposal is accepted by lenders, while private-sector shareholders would control the other 41 percent, precisely reflecting PPC’s current equity make-up.
However, Panagiotakis noted the proposal deals only with the PPC and IPTO division but does not cover PPC’s compensation for its loss of fixed assets.
“We are discussing various [compensation] scenarios…At this stage, I can ascertain that PPC will not surrender IPTO without being compensated,” Panagiotakis remarked.
The most probable solution entails PPC receiving future dividends from the new IPTO company’s earnings.
Sources said the government’s IPTO plan will be submitted to Parliament for ratification by next week, the latest. The latest round of crucial negotiations with the country’s lenders, beginning today, will determine whether the latest IPTO plan is acceptable.