Italy, Greece to consider DESFA deal
By Gunay Camal
Representatives of Italian Snam are expected to arrive in Athens
for talks with the Greek government over the privatization of the
national gas transmission system operator DESFA, Greek media
reported.
Italian company appears to have reached an agreement with SOCAR to
purchase 17 percent of DESFA, according to a report in Ta Nea,.
SOCAR won a tender in 2013 on the purchase of a 66-percent stake in
DESFA for 400 million euros ($446.3 million) but the acquisition
was stalled, when SOCAR faced EU’s anti-trust concerns and was
ordered to sell 17 percent of DESFA to a third party, so that its
stake drops to 49 percent and satisfy EU competition authorities.
Greece passed a law in July which raised DESFA's gas tariffs,
further complicating the sale.
SOCAR hopes it can overcome the EU obstacles, as Italy’s Snam SpA may purchase at least required 17 percent of shares.
Sale of DESFA is part of a privatization programme required
under Greece's three international bailouts since 2010.
In July 2016, Greek Minister of Environment, Energy and Climate
Change Panos Skourletis accused the European Commission of delaying
the deal on selling a share in Greece's DESFA to SOCAR.
Skourletis said that a number of conditions, set by the European
Commission, greatly slowed the privatization process of the gas
operator.
In particular, the company will become a passive shareholder, not
entitled to vote in the management of the company, as a result of
decreasing SOCAR’s share in DESFA up to 49 percent.
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