FACTBOX-Greece's privatisation plans
Feb 14 (Reuters) - Greece agreed in talks with the EU and the IMF last week to substantially increase its privatisation target, as part of a drive to shore up its battered finances and get out of a huge debt crisis. [ID:LDE71D1MG]
It aims to sell stakes in railways, water utilities as well as real estate, to raise 50 billion euros from state asset sales and concessions within the next five years, starting with 15 billion in 2011-2012.
Here are some of the assets the government could sell:
During their latest visit to Athens, EU and IMF officials urged state-controlled lenders to cut costs, sell non-core assets and explore merger and acquisition opportunities. [ID:nLDE71D09E]
Greece's biggest public holdings in banks are a 77 percent stake in ATEbank (AGBr.AT), worth about 570 million euros, and a 34 percent stake in Hellenic Postbank (GPSr.AT).
Greece has said it wants to sell a 49 percent stake in railway OSE, which loses about 1 billion euros a year and has estimated debts of about 10 billion euros. The government will try to sweeten the sale by closing loss-making routes and making other cost cuts.
ATTRACTIVE WATER COMPANIES
Greece will sell a 10 percent stake in the country's biggest water utility Athens Water (EYDAP) (EYDr.AT) and 23 percent of Thessaloniki Water EYATH (TWSr.AT).
Greece has appointed advisers to seek a strategic partner in natural gas company DEPA. The privatisation is expected to be concluded in the second half of 2011. DEPA is 65 percent government-owned, with the remainder held by Hellenic Petroleum (HEPr.AT), Greece's largest refiner. [ID:LDE6BI0BV]
The state owns about 74 percent each in Greece's two largest port operators, Piraeus (OLP) (OLPr.AT) and Thessaloniki (OLTH) (OLTr.AT).
Greece owns about 850 smaller ports across the country. The government has said it would bundle them into holding companies which could then be listed. It would hold a majority stake in those companies, with strategic investors upgrading facilities.
Chinese port operator Cosco Pacific (1199.HK) is already running some of Piraeus port's cargo facilities under a 35-year concession deal.
INDEBTED DEFENCE COMPANIES
The government wants to consolidate and privatise some of its loss-making defence companies, including Hellenic Defence Systems (EAS), Hellenic Vehicle Industry (ELVO) and Hellenic Aerospace Industry (EAV).
It has appointed KPMG to advise it on the privatisation of EAS, which has just over 1,000 workers and accumulated debts of about 1.2 billion euros.[ ID:nLDE70R1EY]
U.S. based ammunition maker Alliant Techsystems (ATK.N), Israel's IMI, and Germany's Rheinmetall (RHMG.DE) have already expressed an interest in a strategic partnership.
EXTENSION OF AIRPORT CONCESSION WITH HOCHTIEF
The state owns 55 percent of Athens International Airport (AIA), the country's biggest. Another 40 percent is owned by German construction group Hochtief (HOTG.DE), which also manages the terminal.
The government said it would extend Hochtief's 30-year concession deal signed in 1995 and eventually seek a listing for the company.
SELLING FORMER AIRPORT
European Commission mission chief Servaas Deroose said Greece could raise 5 billion euros from the sale of Athens' former international airport Hellenikon. [ID:nLDE71915U]
MORE BETTING GAINS
The government wants to retain its lucrative 34 percent stake in monopoly OPAP (OPAr.AT), Europe's biggest betting firm, which has a total market value of 5.1 billion euros.
Greece has also earmarked 1.3 billion euros in revenues from new gaming licences and royalties by 2012.
HOLD ON TO POWER AND TELECOMS
Greece has said it wants to maintain its 20 percent minority stake in the country's biggest telecoms company OTE (OTEr.AT), which is managed by Deutsche Telekom TDEGn.DE.
The government has also said it has no plans to reduce its 51 percent stake in profitable electricity utility Public Power Corp. (DEHr.AT), although the EU encouraged it last week to be open on this matter. [ID:nLDE71D17B]
OLYMPIC REAL ESTATE, PLOTS AND TOURISM PROPERTY
The government has said it would form two real estate holding companies to float them on the stock exchange.
They would run thousands of real estate objects worth billions of euros across the country, including former Athens 2004 Olympics venues as well as other buildings, land plots, hotels, beaches, thermal baths, marinas and casinos.
Greece will sell a 39 percent stake in Hellenic Post, keeping a 51 percent majority stake. (Compiled by Renee Maltezou and Harry Papachristou)
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