Approval Of DEH Privatization Plan

The plan for the privatisation of the Greek Public Public Corporation (DEH), and which was announced in May, involves a three-stage privatization plan that was finally approved by the cabinet this week which local press suggest was part of the required terms indicated by the troika to release the EUR 4bn disbursement. The plan calls for up to 49% of the transmission company (ADMHE) to be in the hands of private investors by the end of 2013, along with management with the option to go to 51% by 2014.

Furthermore, a “small PPC” is going to be created through the carve-out of 30% of the company’s production capacity, which will then be sold to investors by Q1 2015 and finally the divestment of 17% of the existing company by Q1 2016.

Aside from formulating the required structured ahead of privatization, these reforms also create the backdrop required for a fully liberalized electricity market.