Privatisation of energy companies

Privatisation of energy companies

(Article by Andriani Kantilieraki, published in the Energy & Natural Resources Newsletter of the ILO on October 08, 2018)

Pursuant to the commitments undertaken by the Greek state after the first memorandum of
understanding between the Hellenic Republic, the member states of the European Union, the
Monetary Fund and the European Central Bank was signed in 2010 (Law 3845/2010, Official
Government Gazette A’ 65/06.05.2010), the privatisation of energy companies in Greece has
significantly progressed over the past few months. The Hellenic Republic Asset Development Fund
(HRADF) – the legal entity entrusted with implementing the privatisation programme of the Hellenic
Republic – has undertaken a number of relevant projects, including the privatisation of:

  • the Hellenic Petroleum SA (HELPE);
  • the Public Gas Corporation SA (DEPA); and
  • the Hellenic Gas Transmission System Operator SA (DESFA).

Privatisation of HELPE
HELPE is one of the leading energy groups in Southeastern Europe. The main shareholders of the
company are Paneuropean Oil and Industrial Holdings SA with a 45.47% stake in the share capital of
HELPE and the HRADF with a 35.48% stake, while institutional and private parties hold the remaining
19.05% free float.
On 3 April 2018 the HRADF and Paneuropean Oil signed a memorandum of understanding for the
joint sale of a majority participation (at least 50.01%, comprising 61,127,037 shares held by the
HRADF – 20% – and 91,996,191 shares held by Paneuropean Oil and Industrial Holdings SA – 30.1%)
Following this agreement, the HRADF launched a public tender on 18 April 2018. The first phase of
the tender was completed on 30 May 2018, when the following five major holdings declared their

  • Alrai Group Holdings Limited;
  • a consortium composed of Carbon Asset Management DWC-LLC and Alshaheen Group SA;
  • Gupta Family Group Alliance;
  • Glencore Energy UK LTD; and
  • Vitol Holding BV.

The HRADF’s advisers evaluated the aforementioned expressions of interest and submitted their
recommendation regarding the qualifying candidates for the next phase of the tender to the fund’s
board of directors. Following the submission of the recommendations, HELPE’s board of directors
decided on 18 July 2018 that Glencore Energy UK LTD and Vitol Holding BV were qualified investors,
entitled to proceed to the second phase of the tender procedure.

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