PPC’s distribution network transfer to DEDDIE to pave way for 49% sale

The energy ministry is preparing a legislative revision for the transfer of power utility PPC’s distribution network-related assets to subsidiary DEDDIE/HEDNO, the distribution network operator, required for the sale of a 49 percent stake in the latter.

The board at PPC recently reached a decision on the matter, paving the way for the energy ministry to prepare the legislative revision.

As previously reported, PPC has commissioned professional services company Grant Thorton for the asset evaluation, expected in August.

The legislative revision for the transfer of distribution network-related assets to HEDNO/DEDDIE is required as, until now, PPC, by law, has been  permitted to incorporate the subsidiary’s financial results into the group results and also make balance-sheet entries of EBITDA figures concerning the operator.

According to the privatization’s schedule, the nine participating bidders, leading international funds, will submit binding offers within the first week of August.

Dates will then immediately be set for a general shareholders’ meeting for approval of the transfer of assets and the board’s approval of the preferred bidder.

Assuming procedures are not delayed, the sale of DEDDIE/HENO’s 49 percent should be completed within the third quarter of this year.

PPC’s board plans to focus on its international expansion strategy once this sale has been completed.