Following protracted negotiations which on and off lasted more than 10months,the Greek government eventually turned down an offer submitted by a Greek –Russian consortium for the sale of a minority stake in Greece’s leading petroleum and petrochemicals group, Hellenic Petroleum.The consortim comprised the Latsis group, owners of Eurobank and the Petrola refinery and Russia’s largest oil company, Lukoil.
“ The consortium’s final offer received today was not accepted as it was not in the public interest. The tender has been declared void” the Finance and Development ministries said in a joint statement. The government said it would look into other alternative forms of cooperation with international groups for Hellenic Petroleum.Another possibility,according to a government source, would be the placement of part of the company in the Athens Exchange or in the LSE when conditions improve in the international stock markets.
The tender for the sale of a 23.17 percent stake in Hellenic petroleum ended last Monday,itself an extension on a January 15 deadline.Negotiations between the government and the consortium had dragged on since May.The group had offered 454 million euros for the stake,with 7.5 euro per share bid priced at significant premium of approx. 33 percent to Hellenic Petroleum’s stock on the date of the submissiion offer. This premium increased further as stocks at ASE, including HP’s, plunged over the last few weeks.
One major problem that could have held up the sale,accoding to market analysts,was the government’s decision to transfer Hellenic Petroleum’s option for an additional 35 percent stake in gas company DEPA to electricity monopoly utility Public Power Corporation(PPC).Leonid Fedun,Lukoil’s vice president,said negotiations had become fraught because the Greek side kept changing the conditions of the sale and had decided to sell Hellenic Petroleums’s option in DEPA to PPC,according to a Reuters report.
The sale of 23.17 percent of Hellenic Petroleum had been perceived by the government as an opportunity to link up the company with a strategic partner thus strengthening its international orientation.At the same time the government was aiming to secure sizeable proceeds from the sale,as part of its privatisation programme, and so help its fledging finances.
Costis Stambolis