On Tuesday Greece’s power utility Public Power Corp (PPC) approved the transfer of a 51 percent stake in the power grid operator ADMIE.
The move is part of the series of privatizations specified in the bailout agreement that the country is obliged to follow. The Greek government is trying to keep some control over ADMIE by selling off a 24 percent stake to China’s State Grid for €320 million while setting up a cost-free transfer of a 51 percent stake to the state and existing private shareholders.
The transfer was postponed from January 12 to 17 as a result of Greece’s four biggest banks, National Bank, Piraeus Bank, Alpha Bank and Eurobank writing a letter to PPC and the finance ministry last week expressing concerns to shareholders and all parties involved.
The main concern of the banks which have undertaken a €2.2 billion syndicated loan to PPC was that the sale of the 51 percent stake without any proceeds for PPC would harm the utility’s finances.
Following the meetings last week, the banks sent another letter to PPC and the finance ministry on Tuesday expressing positive outlooks regarding the transactions after being given guarantees worth at least €300 million.