The government is putting on ice the process of privatization of DEPA Commerce, while any scenarios for further privatization of Greek Petroleum remain in the drawer.
According to information available to OT.gr, the financial staff of the government is said to be oriented towards the extension of the suspension of the completion of the last phase of the sale of 65% of DEPA Commerce. It should be noted that in addition to the public (HRADF), Hellenic Petroleum is also selling its participation (35%) in the public gas company. It is also reminded that the tender for the privatization of DEPA Commerce is in the phase of submitting binding bids by the potential investors.
DEPA Marketing
The decision to “freeze” privatization is taken for two reasons, as reported in OT.gr by well-informed sources:
1. The intensity and depth of the energy crisis create the need for the Greek government to utilize any “weapon” at its disposal in order to mitigate the effects on society and the economy from the rally of international gas prices. This was seen recently with the government announcing the intervention of DEPA Commerce in the market in order to absorb 15% of the price increases in order to offer a corresponding financial relief for households.
2. The litigation of DEPA Commerce with ELFE is not considered to end immediately, even if the Athens Court of Appeals issued today the decision on the appeals filed by the two companies.
Sources estimate that whatever the decision, the two opponents will continue the court process seeking their justification. Much more, say the same information, in the event that the current litigation is lost by the former Phosphate Fertilizer Industry. What would happen? As competent market participants maintain, the industry, even if the government and the HRADF decided to change the way of privatization of DEPA Commerce, would again take it to court again. In fact, they believe that the new appeal would affect the new model of privatization. It is worth noting that in the scenarios under consideration is the spin-off of the subsidiary “Natural Gas of Greece” from DEPA Commerce so that the parent company is not sold but the gas and electricity retail company is. According to the information, pundits see ELFE to sue the subsidiary by blocking this privatization as well.
It is reminded that the industry is claiming compensation from DEPA Commerce for the way of pricing the quantities of natural gas during the period 2010-2015.
The HEL.PE.
A handbrake, however, also is being applied to the sale of public shares in Hellenic Petroleum.
The participation of the state amounts to 35.5% and after the failed sale attempt about two years ago, the HRADF was in the process of elaborating alternative solutions for the better utilization of the percentage.
They want information, both because of the ongoing corporate transformation process and because of the energy crisis, which scenarios remain in the drawer.
The government is also seeking, through its participation in the listed company, to intervene in order to mitigate the effects of rising fuel and oil prices on the market.
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