According to the report, the talks will be tense.
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 privatization 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.
Last week, Greece proposed amendment to draft law reducing SOCAR revenues from DESFA. Thus, Greek Energy Minister Panos Skourletis proposed to change the valid legislation. It was mentioned if implemented, changes to the draft law on natural gas tariffs would reduce SOCAR’s future profitability dramatically. The minister had a resolute position that these changes were essential for the protection of the domestic gas market. The Greek minister said that these changes are fully consistent with the laws of Greece and Europe and have nothing to do with the process of privatization.
SOCAR likely to mull DESFA privatization in Athens this week
27 July 2016
Read: 2669
A delegation from Azerbaijan’s State Oil Company (SOCAR) is likely to pay a visit to Athens this week to discuss the privatization of Greece’s gas distribution network DESFA and the methodology of estimation of the company, AzVision.az reports citing the Greek Media.
