Wednesday , 20 June 2018
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CMA CGM-backed consortium to take majority stake in Thessaloniki Port
Thessaloniki will become the second Greek port to be privatised after Piraeus

CMA CGM-backed consortium to take majority stake in Thessaloniki Port

A consortium comprising CMA CGM’s terminal operating-arm Terminal Link, Deutsche Invest Equity Partners GmbH and Belterra Investments has been declared as the highest bidder for a 67% stake in Thessaloniki Port Authority.

The total value of the agreement amounts to €1.1bn (US$1.2bn) for Greece’s second largest container port, which is being privatised as part of the terms of the country’s bailout.

The sale follows last year’s acquisition of Piraeus Port Authority (PPA) by COSCO Shipping Ports, which was also administered by the Hellenic Republic Asset Development Fund, which handles privatisations in Greece.

The winning consortium had been shortlisted alongside International Container Terminal Services, Inc. (ICTSI) and DP World.

The offer includes €230m for the acquisition of 67% of the port authority’s shares, mandatory investments amounting to €180m over the next seven years and the expected revenues from the concession agreement for the Hellenic Republic, in an expected amount in excess of €170m.

The total amount takes also into account the expected dividends receivable by the HRADF for the remaining 7.22% shareholding as well as the estimated investments (in excess of the mandatory ones) until the expiration of the concession, in 2051.

A file relating to the tender process will be submitted to the Court of Auditors in the coming weeks for a pre-contractual review of the legality of the process.

The share purchase agreement (SPA) will be signed, following the Court of Auditors’ approval, noted a statement from the HRADF.

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 (SPA), it added.