By Jite Eriabie
The Greek Parliament has ratified the concession contract for the privatization of its second-largest port, the Port of Thessaloniki.
The agreement to sell the 67 percent stake in Thessaloniki port for EUR 231.9 million (USD 275 million) was signed in December 2017 and the ratification of the contract on Thursday, February 22 makes the deal official.
South Europe Gateway Thessaloniki (SEGT) Limited, comprising Deutsche Invest Equity Partners, Belterra Investments and Terminal Link SAS, is the consortium that won the bid to run the port.
The total value of the deal is EUR 1.1 billion and includes mandatory investments amounting to EUR 180 million within the next seven years as well as expected revenues from the concession agreement.
The total value also includes the expected dividends to be received by the Hellenic Republic Asset Development Fund (HRADF) for the remaining 7.22 pct of shares and the estimated investments until the end of the concession period in 2051.
The privatization of the Port of Thessaloniki comes on the back of Greece’s sale of 51 percent stake in Piraeus Port to China’s Cosco Group for EUR 280.5 million.
The privatization of the two ports has been one of the key conditions of the country’s bailout plan with the EU lenders.
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