The Greek State Energy Corporation (PPC-DEI) is expected to complete its share capital plan of around 750 million euros by early November, following a decision taken by its council on Thursday. At the same time, state participation in the company will decrease by 17%.
Final approval of the plan will be given by DEI shareholders at a general meeting scheduled for October 19, while the board of directors has already begun contacts with international investors and has noted significant interest in the plan.
The raised money will be used to finance the DEI investment program, which should reach 8.4 billion euros by 2026. According to the plan, a capital increase scheme is recommended to exclude shareholder rights, although a distribution mechanism could be used to offer new shares to existing shareholders, state news agency Amna reported.
According to naftermporiki, the increase in authorized capital is likely to be combined with a reduction in government participation: from 51%, which it controls in the PPC (Superfund 34%, HRDH 17%), to the minimum decisive percentage, at 34%.
The model followed during privatization by DESFA (Hellenic Gas Transmission System Operator) and Hellenic Petroleum, with the state authorities noted that “the ultimate goal is to increase the free allocation of DEI’s share capital and place private institutional investors creating value for shareholders, the company, employees and society, ”the newspaper notes.
17% of the PPC was transferred to HRDH as an obligation in connection with the second bailout agreement (PM Samaras) and 34% of the Superfund in connection with the third bailout (PM Tsipras).
Share capital increase plan lowered DEI shares on the Athens Stock Exchange up 13% after the ASE opened on Friday morning.