SGCC given administrative rights, IPTO agreement shows

SGCC (State Grid Corporation of China), which has agreed to acquire a 24 percent stake in the power grid operator IPTO, a main power utility PPC subsidiary, has gained administrative rights, including the ability to block decisions on important matters, and, in addition, would be offered first choice should a further stake of the operator be sold, according to the new IPTO shareholders agreement.

The new IPTO nine-member board will be comprised of three representatives from the operator’s holding company, three from SGCC, two from the Greek State, while one member will represent IPTO’s employees.

The managing director will be appointed following written consent from SGCC. Should any disagreement arise, IPTO will present three additional candidates for the top post and SGCC will be required to select one of these within a seven-day period, according to the shareholders agreement. If this is not achieved, then a tender lasting no more than seven days will need to be staged for the appointment of a special recruitment advisor, who will present a list of five additional candidates. These will be eliminated over a series of rounds until one candidate is left for the top post.

Should a special recruitment advisor not be required for the appointment of IPTO’s managing director, then SGCC will be given the right to appoint the operator’s deputy head and chief financial officer.