Desfa Bidding: Greece Asks for Even More

Greek privatisation agency Hradf said April 16 the higher of two bids presented for a 66% stake in Greek gas grid Desfa is still not enough. Last month it had asked two consortiums to submit higher bids.

After opening these revised bids on April 16, Hradf said that the one from the Snam/Enagas/Fluxys consortium was the higher of the two bids, but it asked it to make "a further improved offer, which will be assessed at a subsequent meeting of Hradf’s board of directors and by the appropriate corporate bodies of [Greek refiner] Hellenic Petroleum." 

Snam is Italy's national gas grid operator, while Enagas and Fluxys have the same role in Spain and Belgium respectively. Snam and Fluxys are also involved in joint projects, including the TransAdriatic Pipeline which crosses Greece. Desfa, in addition to the Greek national gas transmission system, also owns the Revithoussa LNG import terminal near Athens.

The Greek government will retain a 34% interest in Desfa, whatever happens. 

Hradf has been instructed to auction the other 66% interest – which is 35% owned by Hellenic Petroleum and 31% by Hradf (also known under its Greek acronym Taiped).

In an April 16 statement, Greek energy minister Giorgos Stathakis said that the state would retain a veto right, even on Desfa taking interests on international projects, and that the purchaser would have to implement a Desfa investment plan amounting to €330mn ($408mn).

Neither the minister nor Hradf's statements disclosed the bid value submitted by Snam/Enagas/Fluxys. Greek newspaper Ekathimerini reported that it understands the bid value was €535mn. 

The rejected revised Desfa bid came from Spain's Reganosa and its subsidiary Reganosa Asset Investments, Romanian state Transgaz and the European Bank for Reconstruction and Development.

Update as of April 17, 3.15pm British Summer Time:

A Snam spokesman told NGW: "The Snam, Enagas and Fluxys consortium was selected by the Greek privatisation agency (Hradf) as a 'preferred investor' for the acquisition of 66% of Desfa. Hradf invited the consortium to proceed in the next phase. The tender is still ongoing and there are no further comments at the moment." Snam did not comment on the consortium's bid value.