Italian Snam Company intends to acquire a stake in the natural gas transmission system operator of Greece DESFA.
Currently, the Directorate-General for Competition of the European Commission is considering the issue on privatization of DESFA.
On July 31, 2013, the Hellenic Republic Asset Development Fund approved the transaction on purchase of 66% of DESFA shares by SOCAR for €400 mln.
In December, 2013, SOCAR and Greece’s state privatisation fund and Petroleum companies signed Contract on Shareholders and the Share Purchase Agreement (SPA). SOCAR purchases 31% share of DESFA from Greek government, 35% from Hellenic Petroleum SA. HRADF will control share package of the DESFA prior to the SOCAR takes over control on it.
According to reports, the Greek government is willing to sell SOCAR for only a 49% share of the gas network operator instead of the earlier agreed up 66%. It was suggested for SOCAR to acquire a 66% stake in DESFA with the later selling back of a 17% equity share.
According to sources, three candidates, Belgium’s Fluxys, Dutch company Gasunie, and an Italian firm – Infrastrutture Transporto Gas and Snam Rete Gas have both been mentioned – are believed to have recently approached TAIPED, the State Privatization Fund, for the 17 percent stake in DESFA. A choice and agreement here will need to be reached at the end of this month. Snam’s equity will not so big. Snam’s joining this transaction is understandable. Because, the company also intends join the TAP.
It’s noted that SOCAR will sell 17%-equity for €100 mln.
On August 26 a SOCAR delegation met with the presidents of Greece’s State Property Management Foundation (Hellenic Republic Asset Development Fund, HRADF) and "Hellenic Petroleum SA" in Athens, Greece.
The sides discussed the issue of privatization of DESFA by SOCAR.
All parties have confirmed their interest in privatization of DESFA by SOCAR.
According to the agreement reached between the parties, the term of the transaction involving the privatization of DESFA by SOCAR has been extended until 21 December of this year.
According to Snam CEO Carlo Malacarne the company will make a decision on acquisition of stake in Trans-Adriatic Pipeline (TAP) by the end of this year.
Earlier, Malacarne told Reuters that the company has started evaluation works since June to acquire 20%-share in TAP.
Azerbaijani President Ilham Aliyev said in his visit to Italy on June 9 that Azerbaijani side is not against acquisition of share by Italian "Snam S.p.A." in TAP.
More about:
