China's Cosco acquires 51 pct stake in Greece's Piraeus Port

Piraeus Port Authority SA

10/08/2016 11:19

By George Georgiopoulos 
    ATHENS, Aug 10 (Reuters) - China's COSCO Shipping 
 600428.SS , owner of the world's fourth largest container 
fleet, took a 51 percent stake in Greece's largest port on 
Wednesday. 
    The sale of Piraeus Port had been suspended by the 
leftist-led government when it won elections in January 2015 but 
talks resumed after Greece agreed an 86 billion euro bailout 
deal with its euro zone partners. 
    COSCO agreed to buy 51 percent of Piraeus Port (OLP) 
 OLPr.AT  in April for 280.5 million euros ($312.51 million) 
under a deal signed with the HRADF, Greece's privatisation 
agency. 
    COSCO bought 51 percent of Piraeus Port (OLP)  OLPr.AT  for 
280.5 million euros ($312.51 million), acquiring a block of 
12.75 million shares in OLP. 
    COSCO Shipping executive Wan Min rang the opening bell at 
the Athens bourse at a ceremony to mark the agreement. 
    Privatisation has been a priority of Greece's bailouts since 
2010, but political foot-dragging and a highly unionised public 
sector workforce have slowed progress. 
    Shares in Piraeus Port, which has a current market value of 
350 million euros, were down 0.4 percent to 13.90 euros as of 
1016 GMT lagging a Athens share index  .ATG  up 0.46 percent.    
    COSCO is expected to increase its stake in Piraeus Port to 
67 percent over the next five years, HRADF said. 
    "Should Cosco fulfil certain conditions set out in the 
agreement, including the successful completion of the mandatory 
investments up to 300 million euros, it will pay HRADF an 
additional 88 million euros and increase its stake by 16 percent 
to 67 percent," it said. 
    Greece's parliament ratified the sale in June, overcoming 
some last-minute snags which triggered complaints from the local 
COSCO representative.  ID:nL8N19M56D  
    Last month COSCO said it would invest up to 500 million 
euros in Piraeus Port to upgrade cruise and shipping container 
facilities.  ID:nL8N19S0VO  
    Operator of one of Piraeus's container terminals since 2009, 
COSCO has boosted the port's competitiveness.  
    The port's container throughput stood at 3.36 million 
20-foot equivalent units (TEUs) last year, up from 880,000 TEUs 
in 2010. 
 
 (Reporting by George Georgiopoulos; editing by Jason Neely) 
 ((george.georgiopoulos@thomsonreuters.com; +30210 337 6437; 
Reuters Messaging: 
george.georgiopoulos.thomsonreuters.com@reuters.net)) 
 
Keywords: GREECE PRIVATISATION/PORT