PPC set to appoint boards of two firms selling lignite units

The main power utility PPC intends to appoint, within the next few days, the boards of two new companies to carry the utility’s lignite mines and power stations included in a bailout-required sale representing 40 percent of the corporation’s overall lignite capacity, CEO Manolis Panagiotakis has announced.

Procedures for the disinvestment are believed to be progressing on schedule. Investors have until June 21 to express first-round, non-binding interest for the units included in the sale.

A broad turnout is expected in the first round, but many local investors insist they will emerge for the sale’s preliminary stage on an exploratory basis.

The two new PPC firms will operate concurrently with the sale procedure, according to the power utility’s boss.

The increased cost of CO2 emission rights, consistently over 15 euros per MWh in recent times, is a concern for the sale as it adds to the risk faced by prospective investors.

“We could make a bid if we see that the units can operate even with a marginal profit margin,” the representative of one potential investor, still reserved about the prospects of the units up for sale, told energypress.

The Mytilineos group and GEK-Terna have both declared they will submit non-binding offers on June 21, but it remains unknown whether they will be willing to make follow-up offers. Elpedison has insisted it will not turn up for the first round. The Stasinopoulos group is expected to participate, either independently or as part of a consortium. The first-round participation of a consortium comprised of the Copelouzos group and China’s Shenhua is also seen as a certainty.

According to the sale plan, binding offers will be submitted in September following the provision of data-room access to participants, offering details on the units to be sold.