China's COSCO to buy 51 pct stake in Piraeus Port next week - sources

Piraeus Port Authority SA

05/08/2016 11:16

ATHENS, Aug 5 (Reuters) - China COSCO Shipping  600428.SS , 
which owns the world's fourth largest container fleet in terms 
of capacity, is expected to wrap up the purchase of a majority 
stake in Greece's largest port, Piraeus Port (OLP)  OLPr.AT , 
next week, sources close to the matter said on Friday. 
    Under a deal signed in April between COSCO and Greece's 
privatisation agency (HRADF), COSCO will buy 51 percent of 
Piraeus for 280.5 million euros ($312.5 million). 
    COSCO will acquire a further 16 percent stake for 88 million 
after five years, and once it completes mandatory investments of 
300 million euros. 
    The transfer of the 51 percent stake to COSCO through the 
Athens Stock Exchange  .ATG  will likely take place on 
Wednesday, an official close to the process told Reuters. 
    Another official said that once COSCO acquired the 51 
percent stake, a new board at Piraeus Port would be formed. 
    Greece's parliament approved the sale in June, overcoming 
some last minute snags which triggered complaints from the local 
COSCO representative that parts of the deal submitted to the 
legislature reneged on the initial deal.  ID:nL8N19S0VO  
    COSCO said last month it would invest up to 500 million 
euros in Piraeus Port to upgrade cruise and shipping container 
operations.  ID:nL8N19S0VO  
    It has been operating one of Piraeus's container terminals 
since 2009 and has boosted the port's competitiveness since 
then. The port's throughput stood at 3.36 million 20-foot 
equivalent units (TEUs) of containers last year, up from 880,000 
TEUs in 2010. 
    ($1 = 0.8972 euros) 
 
 (Reporting by Angeliki Koutantou; Editing by Mark Potter) 
 ((angeliki.koutantou@thomsonreuters.com; +30 210 3376436; 
Reuters Messaging: angeliki.koutantou.reuters.com@reuters.net)) 
 
Keywords: GREECE PRIVATISATION/PORT