Financial advisers chosen for selling Greek DESFA

Oil&Gas Materials 18 May 2017 13:50 (UTC +04:00)

Baku, Azerbaijan, May 18

By Leman Zeynalova – Trend:

One Greek bank and one foreign bank have been chosen as financial advisers for privatization of Greek DESFA natural gas grid operator, Hellenic Petroleum SA said during a conference call, as confirmed to Trend by Greece’s Hellenic Republic Asset Development Fund (HRADF).

Reportedly, the process of selling DESFA is not expected to be completed earlier than 6 to 12 months, however, the completion of the transfer cannot be earlier than the first half of 2018 as necessary approvals will be required.

In March 2017, HRADF Board of Directors decided to proceed with a new tender for DESFA.

Earlier, Azerbaijan’s state oil company SOCAR won a tender in 2013 on the purchase of a 66-percent stake in DESFA for 400 million euros.

SOCAR intended to obtain a 31-percent stake from the Greek government and to buy a 35-percent stake in Hellenic Petroleum.

It was expected that the deal will be closed only after the purchase of at least a 17-percent stake out of SOCAR’s 66-percent by Italy’s Snam.

SOCAR, Snam and Greek government have been holding intensive talks against the background of changes in legislation that affected DESFA’s financial position and market value.

However, the parties were unable to reach an understanding and consequently, the deal was terminated Nov. 30, 2016.


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