Greece has selected the consortium comprising Deutsche Invest Equity Partners, Belterra Investments and Terminal Link as the highest bidder for the 67% stake in Thessaloniki Port Authority.
Namely, the consortium submitted an improved financial offer for the acquisition of the stake as part of the respective international competitive process, Hellenic Republic Asset Development Fund (HRADF) informed.
The improved financial offer envisages payment of a consideration of EUR 231.9 million for the acquisition of 67% of shares in ThPA S.A.
The total value of the agreement amounts to EUR 1.1 billion and includes among others the aforementioned EUR 231.9 million offer, the mandatory investments amounting to EUR 180 million over the next seven years and the expected revenues from the concession agreement for the Hellenic Republic, in an expected amount in excess of EUR 170 million.
The total amount takes also into account the expected dividends receivable by the HRADF for the remaining 7.22% shareholding as well as the estimated investments until the expiration of the concession in 2051.
“The above development signals a new era for the Port of Thessaloniki, the prospects of economic development of Northern Greece and the country as a whole,” HRADF said.
“A file relating to the tender process will be submitted to the Court of Auditors in the coming weeks for a pre-contractual review of the legality of the process; the share purchase agreement (SPA) will be signed, following the Court of Auditors’ approval,” the fund added.
The completion of the transaction is subject to the competent authorities’ approvals and the satisfaction of certain further conditions provided for the share purchase agreement (SPA).
After it received three bids for the sale of a 67% stake in Thessaloniki Port Authority, Greece asked the interested companies to submit improved financial offers in early April.
The earlier three binding financial offers, submitted on March 24, came from International Container Terminal Services (ICTS) from the Philippines, the Peninsular and Oriental Steam Navigation Company, a DP World company, and Germany’s Deutsche Invest Equity Partners GmbH together with Belterra Investments LTD and Terminal Link SAS.
Thessaloniki Port Authority, the second largest port in the country, is being privatized under the same terms as its counterpart Piraeus, the majority stake of which was officially acquired by China’s port operator Cosco Group (Hong Kong) Limited in August 2016.
The privatization processes of the country’s two ports were launched in 2014.