Posts Tagged ‘Greece’

Have You Got Any Spare Cash Lying Around?

May 19th, 2011

It’s a Greek yard sale: pieces of Greece at bargain prices
Greece has appointed financial advisors for a host of privatization projects after fierce pressure by international lenders to speed up asset sales to reduce its debt. The Greek government appointed Deutsche Bank and National Bank to advise it on plans to sell its 34 percent stake in Europe’s biggest betting company OPAP, worth about 2.1 billion dollars at current market prices.

Raising money
Greece has pledged to raise about 70 billion dollars from state asset sales by 2015. The finance ministry appointed advisors for 15 different privatization projects, including OPAP, motorway concessions, the natural gas company DEPA, the auctioning of frequency spectrum, state property and the state railway company OSE.

The financial advisors
Among the companies hired are HSBC, BNP Paribas, Credit Suisse, Ernst and Young, Rothschild & Sons and Citigroup Inc. Here is a list of potential privatizations:

Horseracing, lotteries and betting firms
The government is seeking investors to sell its 100% holding in Hellenic Horse Racing Co. It also owns a 34% stake in OPAP in Europe’s biggest betting firm and wants to set up a new company to assign its state lottery tickets rights and then privatize it.

Athens international airport (AIA)
The state owns 55% of the country’s biggest airport in Athens (AIA) and 40% is owned by German construction group Hochtief, which also manages the terminal. The government said it would extend Hochtief’s 30-year concession deal signed in 1995 and eventually seek a listing for the company.

Airbus aircraft
Here’s a possible bargain: The state wants to sell four Airbus A340 aircraft.

Real estate
The government will form one or more real estate holding companies to register and manage its real estate. Greece wants to exploit thousands of real estate objects worth billions of Euros across the country, including former Athens 2004 Olympics venues, as well as other buildings, land plots, hotels, beaches, thermal baths, marinas and casinos.

Gas operator (DEPA)
Greece is seeking a strategic partner in natural gas company DEPA. The privatization is expected to be concluded in the second half of 2011. DEPA is 65% government-owned, with the remainder held by Hellenic Petroleum, Greece’s largest refiner.

Defense companies
The government wants to consolidate and privatize some of its loss-making defense companies, including Hellenic Defense Systems (EAS), Hellenic Vehicle Industry (ELVO) and Hellenic Aerospace Industry (EAV).

Railway OSE
Greece has said it wants to sell a 49 percent stake in railway OSE, which loses about 1-billion Euros a year and has estimated debts of about 10 billion Euros. The government will try to sweeten the sale by closing loss-making routes and making other cost cuts.

Hellenic motorways
The government will set up a company, which will hold its rights on the country’s current toll roads and on any future infrastructure projects. It plans to later sell its stake in the company.

Frequency spectrum
The government said it wants to take advantage of its rights in the frequency spectrum. It has not provided any details.

Tags: Greece, Greek debt, Privatization, Raising money
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