HRADF unveils highest bidder for Thessaloniki port

The Hellenic Republic Asset Development Fund said a consortium comprising Deutsche Investment Equity Partners, Belterra Investments, and Terminal Link submitted an improved financial offer for a majority stake in the Greek port.    A consortium comprising German private equity firm Deutsche Invest Equity Partners, Cyprus-based Belterra Investments and Terminal Link, the port arm of French ocean carrier CMA CGM, submitted an improved financial offer for a majority stake in Thessaloniki Port Authority.
   The improved financial offer envisages payment of a consideration of 231.9 million euros (U.S. $253.7 million) for the acquisition of 67 percent of shares in the port authority, the Hellenic Republic Asset Development Fund (HRADF) said.
   The total value of the agreement amounts to 1.1 billion euros and includes the 231.9 million euro offer, the mandatory investments amounting to 180 million euros over the next seven years, and the expected revenues from the concession agreement for the Hellenic Republic, in an expected amount in excess of 170 million euros.
   “The total amount takes also into account the expected dividends receivable by the HRADF for the remaining 7.22 percent shareholding as well as the estimated investments (in excess of the mandatory ones) until the expiration of the concession, in 2051,” the HRADF said.
   In the coming weeks, a file relating to the tender process will be submitted to the Court of Auditors for a pre-contractual review of the legality of the process. Following approval by the Court of Auditors, the share purchase agreement will be signed.
   “The completion of the transaction is subject to the competent authorities’ approvals and the satisfaction of certain further conditions provided for the share purchase agreement,” the HRADF said.
   The other two bidders for Thessaloniki port were Philippines-based International Container Terminal Services (ICTS) and DP World’s UK Unit, Peninsular and Oriental Steam.
   In August 2016, China COSCO Shipping purchased a majority stake in the Port of Piraeus, Greece’s largest port, for 280.5 million euros (U.S. $304.8 million). Under the terms of the deal, China COSCO Shipping would buy an additional 16 percent share for 88 million euros within five years and invest 350 million euros in the port over the next 10 years.
   Greece had agreed to the privatization of both ports as part of a bailout deal with the European Union and the International Monetary Fund.