The search for a PPC partner is on, full speed

The ministers of economy and finance, Nikos Christodoulakis, and of development, Akis Tsochadzopoulos are due to discuss energy issues today, focusing on the search for a strategic partner for the Public Power Corporation (PPC) and its proposed acquisition of a 30-percent stake in the Public Gas Corporation (DEPA). Christodoulakis stated recently that PPC will seek a strategic investor at the end of the year, although he initially favored the floating of a second block of PPC shares (approximately 16 percent was floated in December). He is now proposing the sale of a 32-percent share of PPC to a large foreign peer company through an international tender. The size of the share is said to have been decided after contacts of PPC’s Managing Director Stergios Nezis with Germany’s EON and RWE, France’s EdF, Italy’s ENEL and Britain’s National Power last week. Tender options According to press reports earlier this week, however, the five suitors insisted on a share of no less than 34 percent in PPC, which would give them blocking minority rights. The international tender option means that the selection of the strategic partner will depend not only on price but especially on the winner’s proposals for expanding to neighboring countries’ markets and promoting the grid connection with western Europe through an underwater cable in the Adriatic going to Montenegro, Croatia and Slovenia. PPC posted 947-percent net profit growth to 260 million euros in 2001, its total debt fell 5.6 percent to 4.7 billion euros and interest payments fell 20.3 percent. Revenues rose 7.8 percent while the number of employees was reduced by 6.5 percent to 29,500. Greece’s electric power market was officially deregulated in February last year but independent producers have not yet launched operations and PPC remains the effective monopoly.