The main power utility PPC’s finalized SPA terms for a bailout-required sale of lignite units that includes its Meliti and Megalopoli power stations will, barring unexpected developments, be presented at a board meeting today.
The power utility is aiming to set a May 6 deadline for binding bids but prospective buyers fear such a date offers little time for a thorough assessment of terms and shaping of bids and is made even tighter by the loss of working days as a result of the upcoming Greek Orthodox Easter break, sources informed. The prospective buyers will push for a few extra days to prepare their bids, the sources added.
The revised SPA terms for this sale, relaunched after an initial effort did not produce a result, do not feature any spectacular changes, sources informed. The package will not include a profit-and-loss sharing arrangement for PPC and new unit owners, as had been requested by some of the prospective buyers seeking investment protection.
Calls by investors for clarification on the CAT remuneration eligibility of units remain murky as the European Commission has yet to endorse such a plan.
However, improved lignite supply terms between the operator of the Ahlada mine feeding Meliti and this power station’s owner will be included in the revised SPA terms.
The new terms will be uploaded onto the sale’s video data room within the next few hours, sources informed.
PPC views its Meliti and Megalopoli power stations as profitable following the recent implementation of a voluntary exit plan that has reduced staff numbers. Investors will have the final say once they receive the sale’s SPA terms.