Greece must sell DESFA by the end of the year under privatization conditions imposed by a bailout scheme. Under the bailout agreement, the biggest refinery in Greece, Hellenic Petroleum, is selling its 35% stake in DESFA and the remaining 31% will be sold by the Greek state.
DESFA transports and distributes gas in Greece from neighboring Bulgaria and Turkey. It had a turnover of EUR170 million and a net profit of EUR34 million in 2016. Its fixed asset value stands at around EUR1.3 billion.
Negotiations to sell 66% in DESFA started after the company failed to reach a deal with Azeri oil company SOCAR.
The company has attracted bids from five other players across the globe, namely Macquarie Infrastructure and Real Assets Ltd/ Snam (Italy), Engas Internacional (Spain), BFluxys (Belgium) and Gasunie (The Netherlands), and Powerglobe LLC from Qatar.
The next step in the process is for the Greek privatization agency TAIPED to check that the expressions of interest are valid. This is expected to take two to three weeks because of the summer vacations. The privatization agency’s board is then due to approve the investors so they can pass on to the second phase of the tender, when they will gain access to DESFA’s virtual data room and have the right to submit a binding offer.
The Greek government has set EUR400 million as a starting price for the tender, which is what SOCAR offered in June 2013 for the 66% stake.