Hellenic Petroleum S.A. and Edison SpA, Italy’s second largest electricity producer and gas distributor, announce yesterday the signing of their final agreement for a strategic alliance in the sector of power generation and trading.
This alliance will take the form of a 50-50 holding company and aims to create one of Greece’s leading electricity operators, with a power generation portfolio of 1,500-2,000MW and power trading and marketing activities. The holding company may also pursue investments in renewable energy sources in Greece as well as opportunities in power generation and trading in the Balkans and in natural gas production.
Specifically, the holding company will control:
- A thermal power generation subsidiary in which it will own 75% and Hellenic Energy & Development (HED) and Halcor will jointly own 25%.
- A wholly-owned subsidiary to carry out trading and marketing of electricity.
Hellenic Petroleum contributes to the generating subsidiary its 390MW CCGT power plant in Thessaloniki, Greece. Edison, in turn, contributes its 65% stake in the 420MW CCGT power plant in Thisvi, Greece (under construction), as well as projects currently in the study phase for the construction of additional power plants. HED and Halcor contribute to the generating subsidiary their 35% stake in the Thisvi power plant.
To balance the respective asset contributions of the partners, Hellenic Petroleum will receive a €55 million payment from Edison, whereas the holding company will receive a €30.7 million payment from HED and Halcor. The transaction is subject to all relevant regulatory approvals.
According to John Costopoulos, Chief Executive Officer of Hellenic Petroleum: “The strategic alliance with Edison, a very dynamic and highly experienced player in the power and gas business, significantly expands our company’s power generation and trading capacity to meet the growing demand for electricity in Greece. In our joint power generation subsidiary, the HELPE-Edison partnership is further enhanced through the participation of affiliates of HELLINIKI TECHNODOMIKI and VIOHALCO, two strong and prestigious Greece-based groups.
This transaction is consistent with our strategy to build upon our current position through strong partnerships in this high potential market”.
“With this transaction, Edison broadens the scope of its electric power operations to include Greece, a market that has been growing at a faster rate than the average for the European Union,” said Umberto Quadrino, Edison’s Chief Executive Officer. “The cooperation with such an important and highly reliable partner as Hellenic Petroleum, as well as with affiliate companies of prestigious Hellenic business Groups like HELLINIKI TECHNODOMIKI and VIOHALCO, will enable us to combine our forces to create the second largest operator in Greece and strengthen our position in the country”.