The economic team will present today, Friday, a plan for the mammoth privatizations, "wrapped" around by Development and the fewer measures and sacrifices toward the people, to the cabinet under the leadership of the PM. But they will also play the trump card for the sale of companies that are considered as taboo, as the list will include the sale of the 15% of OTE, and possibly the 17% of PPC.
The cabinet will mainly discuss the already deployed austerity measures for this year and 2012. The "hot" issues for the raise of levies, charges and reversals in the SOEs would probably be discussed after Easter.
Thus, privatizations will be first on the list and the government is betting a lot on them since, according to the same sources, it will be setting a very ambitious target for total proceeds of up to 18 billion by 2015, surpassing the commitment of 15 billion million set in the memorandum.
The target for revenue from privatizations will mostly come (about 10-12 billion) from state holdings in listed and non-listed companies while a further 6-8 should come from the sale and use of public property.
The plans for OTE, PPC, EIDAP
Reportedly, the Finance minister will ask to be given the green light so that the state would go to a sale of up to 15% of OTE. Eventually, this project will provide for more than the option agreed with Deutsche Telekom for a package up to 10% for 400 million. The extra 5% but will be available at lower prices, given the current market value of the share. This way, the state’s share of 20% may even fall to 5%, which will be kept by the state (it includes 4% of TAP-OTE) to avoid losing its rights in the Organization’s administration (as foreseen in the original contract with the Germans).
But it seems that a last-minute shift is recoded in PPC. According to information, the state is planning to release in equity, shares of up to 17% from its 51%. Although PASOK ruled out the sale of PPC in the pre-election period, under the current economic conditions it was deemed as appropriate to sell the 17% of the Organization and keep the 34% and its rights as majority shareholder and blocking minority to the General Assembly.
However, the implementation time of any such decision remains unknown and it may come after 2012 or 2013 as assessments and the separation of transmission and distribution are still pending.
EYDAP, EYATH water companies are also joining the long list of small and large companies (OPAP, LARKO etc.) for which, however, the state will chose the solution of a strategic investor instead of securitization.
The cabinet will mainly discuss the already deployed austerity measures for this year and 2012. The "hot" issues for the raise of levies, charges and reversals in the SOEs would probably be discussed after Easter.
Thus, privatizations will be first on the list and the government is betting a lot on them since, according to the same sources, it will be setting a very ambitious target for total proceeds of up to 18 billion by 2015, surpassing the commitment of 15 billion million set in the memorandum.
The target for revenue from privatizations will mostly come (about 10-12 billion) from state holdings in listed and non-listed companies while a further 6-8 should come from the sale and use of public property.
The plans for OTE, PPC, EIDAP
Reportedly, the Finance minister will ask to be given the green light so that the state would go to a sale of up to 15% of OTE. Eventually, this project will provide for more than the option agreed with Deutsche Telekom for a package up to 10% for 400 million. The extra 5% but will be available at lower prices, given the current market value of the share. This way, the state’s share of 20% may even fall to 5%, which will be kept by the state (it includes 4% of TAP-OTE) to avoid losing its rights in the Organization’s administration (as foreseen in the original contract with the Germans).
But it seems that a last-minute shift is recoded in PPC. According to information, the state is planning to release in equity, shares of up to 17% from its 51%. Although PASOK ruled out the sale of PPC in the pre-election period, under the current economic conditions it was deemed as appropriate to sell the 17% of the Organization and keep the 34% and its rights as majority shareholder and blocking minority to the General Assembly.
However, the implementation time of any such decision remains unknown and it may come after 2012 or 2013 as assessments and the separation of transmission and distribution are still pending.
EYDAP, EYATH water companies are also joining the long list of small and large companies (OPAP, LARKO etc.) for which, however, the state will chose the solution of a strategic investor instead of securitization.
by Kostis Plantzos
source: PROTO THEMA
