IPTO Holding

Greek energy market attracting major interest at London roadshow

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Foreign funds are expressing major investment interest in Greece’s renewable energy market as well as the country’s plan for green energy transportation from the Middle East, while major international energy groups appear extremely interested in Greek upstream developments and the ongoing transformation of Greece as a natural gas hub, a series of one-on-one and group meetings between highly ranked officials of Greek energy groups and international investors have highlighted following the first day of a roadshow in London.

The London event, co-organized by the Athens bourse and Morgan Stanley, has already indicated that 2023 could be a bumper year for foreign investments in Greece’s energy sector.

Of 29 Greek companies taking part in the road show, ten hail from the energy sector, a representation highlighting the strong international investment interest in Greece’s energy market.

Power grid operator IPTO’s ADMIE Holdings, Cenergy, Ellaktor, Elvalhalcor, Helleniq Energy, Motor Oil, Mytilineos, PPC, TERNA and Viohalko, the ten Greek energy groups taking part, will hold further meetings with investors today. These sessions could lay the foundations for new deals.

Over 300 meetings are scheduled to take place at the London event. Many of these will purely focus on energy matters.

 

IPTO board changes following new board for IPTO Holding

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Two board members at power grid operator IPTO, Giannis Kambouris and Dimosthenes Papastamopoulos, both choices of the previous Syriza government, are resigning, sources have informed.

Kambouris, also the deputy at IPTO Holding, formed following ownership unbundling at IPTO three years ago, resigned from the IPTO board yesterday.

Papastamopoulos, one of the closest associates of the main opposition Syriza party’s Panos Skourletis, who held the country’s energy portfolio, appears set to submit his resignation.

The replacements of Kambouris and Papastamopoulos could be announced tomorrow at an IPTO board meeting.

An entirely new five-member board for IPTO Holding is expected to be announced at an IPTO Holding annual general shareholders’ meeting scheduled for July 16.

The New Democracy government wants to make changes at IPTO and IPTO Holding for further alignment with its policies.

IPTO chief executive Manos Manousakis will definitely remain at his post, sources noted, adding that his deputy, Giannis Margaris, and board member Iasonas Rousopoulos will both probably also carry on for the time being at least.

Government moving to replace entire IPTO Holding board

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The government intends to soon replace all five board members of listed IPTO Holding, its representative in power grid operator IPTO with a controlling 51 percent stake. IPTO was ownership unbundled three years ago.

The energy ministry is expected to propose, as replacements, five new officials on July 16, when IPTO Holding is scheduled to hold its annual general shareholders’ meeting, energypress sources have informed.

A shareholders’ decision on a new five-member IPTO Holding board is one of eight issues on the upcoming meeting’s agenda.

The term of the current board, comprising Iason Rousopoulos, the chief executive, Giannis Kabouris, its deputy, and board members Alexandros Nikolouzos, Konstantinos Karakatsanis and Evaggelos Darousos, expires on December 11 this year.

The existing board has asked shareholders to submit resumes of candidates they wish to propose for the new board no later than 48 hours prior to the July 16 meeting.

The IPTO Holding board change is not expected to impact – at least initially – work proceedings at power grid operator IPTO. Rousopoulos and Kabouris, IPTO Holdings’ chief and deputy, respectively, are also members of the IPTO power grid operator board.

DES ADMIE, the IPTO public holding company, holds a 25 percent share of IPTO and China’s SGCC the other 24 percent.

IPTO’s chief executive Manos Manousakis, who has the faith of the energy ministry and the Chinese shareholder, is expected to remain at his post, despite the changes at IPTO Holding, and orchestrate the sale of a further stake in IPTO. SGCC maintains priority rights in any prospective IPTO privatization procedure.

 

 

DEPA Infrastructure bidder shortlist expected end of month

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A shortlist of second-round bidders for DEPA Infrastructure, a new entity formed by gas utility DEPA ahead of its privatization, is anticipated towards the end of May, while the cut for DEPA Trade bidders, the utility’s other new division being privatized, could be announced a month later, government sources have informed.

DEPA Infrastructure, whose earnings are regulated by RAE, the Regulatory Authority for Energy, is less vulnerable to the impact of the pandemic, which is not the case for DEPA Trade, fully exposed to market forces.

“We will not rush, for any reason, to take action that would lead us to much lower offers than the prices we are seeking,” Aris Xenofos, president of the privatization fund TAIPED, told Reuters yesterday.

Weighted Average Cost of Capital (WACC) levels set for network operators by RAE before the coronavirus crisis emerged offer protection to certain privatizations against the global economic uncertainty, government sources told energypress.

Though absolute safety can never be assured, DEPA Infrastructure, whose WACC level has been set at around 7 to 8 percent, is less susceptible to financial volatility compared to other companies on Greece’s privatization list.

DEPA Trade, Hellenic Petroleum ELPE, and power grid operator IPTO – its earnings are regulated but the company is listed through IPTO (ADMIE) Holding – are all far less resilient.