The race for a controlling a stake in the Piraeus Port Authority (OLP) may not be that much of race after all.
Cosco Pacific is the only country to have made an offer for 51% of OLP on Monday, Kathimerini newspaper reported. The company already has a 35 year deal with the Greek government on the operations of Piers II and Pier III.
While the Hellenic Republic Asset Development Fund (TAIPED), the agency responsible for privatizations, announced that it will reveal the names of those who had submitted offers on November 12.
While the current offer concerns the 51% steak, there is the option to further increase that stake by 15% five years later if certain terms are met. Namely, the company must pour money to the port’s development, with Kathimerini reporting investments should be around 350 million euros.
Even if Cosco is the only interested party, its offer is subject to the approval of two appraisal committees. These appraisal committees will each provide their own estimation of a worthy bid. Should Cosco’s bid surpass both appraisal estimations then TAIPED will agree to the sale. If it exceeds only one appraisal estimation TAIPED will pressure for an increase, Kathimerini explains. A bid below both estimations will be rejected.