State Grid Corporation of China €327.6 million acquisition of 24% stake in ADMIE

Overview:

• The State Grid Corporation of China (State Grid) has acquired a 24% stake in Independent Power Transmission Operator (ADMIE) for €327.6 million from Public Power Corporation (PPC).
• ADMIE is a Greek power grid operator.
• PPC is the Greek state-owned power generation and electricity distribution company.
• The State Grid Corporation of China is also a state-owned electricity distribution company.
• Alongside the divestiture PPC reorganised the remaining shareholding, transferring a 25% interest to state-owned SPV DES ADMIE for €295.6 million, and moving the remaining 51% interest to ADMIE Holdings, a holding company owned by PPC’s shareholders (the Hellenic Republic and the Hellenic Republic Asset Development Fund - HRADF).
• Greece received binding bids for the stake in October 2016, with the outcome announced later the same month. A consortium comprising Italy’s Terna and F2i SGR lost out to State Grid, who completed the transaction successfully on June 20 2017 following all necessary approvals.
• In January 2017, Greekreporter.com noted that the concerns of four large Greek banks (Alpha Bank, Eurobank, National Bank and Piraeus Bank) for the effects of the reorganisation on PPC’s finances had been eased by guarantees worth at least €300 million. PPC was said to have a €2.2 billion syndicated loan with the consortium.
• The deal is part of Greece’s wider privatisation plan following its financial bailout.

Jordan Hughes – Journalist