The main power utility PPC’s board will stage an extraordinary meeting today to approve terms of sale and purchase agreements (SPAs) negotiated over the past few months with prospective buyers of bailout-required PPC lignite units, appoint a committee for the sale procedure, and also endorse an evaluation process for investor offers.
In the lead-up, a number of prospective bidders threatened to withdraw their interest from the PPC lignite units sale if certain terms were not ensured in the SPAs.
PPC chief executive Manolis Panagiotakis has, to a certain extent, acknowledged the investor uncertainty over the sale procedure, including during an IENE (Institute of Energy for Southeast Europe) conference last week.
One SPA term agreed to by PPC entails a 50-50 share of profits and losses with buyers of lignite units for two years, with an upper limit equivalent to 10 percent of the sale price of power stations intact.
Prospective buyers have also ensured for themselves a term offering protection against PPC fines should European, Greek or any other authorities not offer their approval of purchase agreements.
PPC has also committed to possessing capital amounts of 4 million euros for the Megalopoli lignite unit and 2 million euros for the Meliti unit.
Another SPA term will require buyers of PPC lignite units to not dismiss any personnel for a six-year period following their respective acquisitions. Severance pay factoring in the entire employment period of workers at PPC will be required if this condition in breached.