On 5.3.2014, HRADF launched an international tender for the sale of 67% of the shares of PPA S.A., which has the exclusive right to use and develop the assets of the port of Piraeus until 2052 by virtue of the concession agreement dated 13.02.2022 signed between the Greek State and PPA.
Following the successful award of the international tender, the Share Purchase Agreement was signed on 08.04.2016 with COSCO SHIPPING (Hong Kong) Co., Limited, for the transfer of 67% of the PPA shares in two stages for a consideration of €368,500,000, which corresponds to a total valuation of 100% of the shares of PPA, amounting to €550,000,000. On 24 June 2016, the concession agreement was ratified by law (Law 4404/2016 Government Gazette, Series I, 126/08.07.2016).
As a first step, on 10.08.2016 the transfer of 51% of the PPA shares was completed for a consideration of €280,500,000, and the remaining 16% of the PPA shares and their consideration of €88,000,000 were placed in escrow.
On 6.10.2021, the second step involved the completion of the transfer of the remaining 16% of the PPA S.A. shares to COSCO SHIPPING (Hong Kong) Co., Limited, which paid HRADF the consideration of €88,000,000 for 16% of the shares, for which HRADF also collected €11.87 million in accrued interest.
Based on the updated concession agreement (24.06.2016), the rate of the annual variable consideration paid by PPA to the Greek State was set at 3.5% of the annual consolidated revenues, with a minimum annual financial consideration of €3.5 million.
PPA’s ownership structure today is: COSCO 67%, HRADF 7.14%, investing audience (free float) 25.86%.
The Company’s main activities are the provision of ship docking services, cargo handling and loading/unloading services, as well as the storage of goods and car transportation. Additionally, the Company is responsible for the maintenance of the Piraeus Port facilities, the supply of port services (water, electricity, telephone connection, etc.), the servicing of passenger traffic (coastal shipping and cruise ships) and the concession of spaces to third parties for consideration.
The implementation of PPA S.A.’s mandatory investment programme, in addition to strengthening the company’s financial position, is expected to have a multiplier effect on the benefits for the local and national economy.
HRADF, holding at least one million two hundred and fifty thousand (1,250,000) voting shares and less than 10% of the voting shares issued by the company, is entitled to appoint one (1) Member to the Company’s Board of Directors, pursuant to Article 79 of Law 4548/2018 as in force, as well as one (1) non-executive BoD Member of its choice to the Audit Committee, while retaining a veto right on reserved matters.
According to the Concession Agreement, the company’s mandatory investments amount to a reference cost of €293.8 million. and the additional voluntary investments to a reference cost of €167.0 million.
For the sale of 67% of PPA, the Greek State and HRADF appointed Morgan Stanley and Piraeus Bank as financial advisors, the law firm Freshfields Bruckhaus Deringer LLP as legal advisor and Hamburg Port Consulting and Marnet Engineering Consulting as technical advisors in order to assist in the privatisation.
