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Norton Rose Fulbright Advises on Unbundling and Partial Privatization of Greek Electricity TSO

Norton Rose Fulbright Advises on Unbundling and Partial Privatization of Greek Electricity TSO

Greece
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Norton Rose Fulbright has advised the Hellenic Republic on the ownership unbundling of the Greek power grid operator, ADMIE, from the Public Power Corporation, and the partial privatization of ADMIE through the sale of a 24% interest to the State Grid Corporation of China.

PPC is Greece’s vertically integrated power generation and electricity supply company. The transaction involved a divestment by PPC of a 24% interest in ADMIE to State Grid for EUR 327.6 million and a 25% interest to DES ADMIE, a state-owned SPV, for EUR 295.6 million and a transfer of the remaining 51% interest to ADMIE Holding, an SPV owned by PPC’s shareholders. The transaction also included the capitalization of ADMIE reserves amounting to EUR 131 million that were distributed to PPC through a subsequent decrease in ADMIE share capital.

Norton Rose Fulbright assisted the Hellenic Republic in the structuring of the multi-staged transaction, which was successfully negotiated with the European Commission, acting on behalf of the European Stability Mechanism, as well as the European Central Bank and the International Monetary Fund, which are involved in the Greek support program.

Norton Rose Fulbright Partner Dimitris Assimakis commented that: "This has been a highly complex and challenging transaction that was completed in just 15 months. Within the pressing timeline and the government debt limitations set out under the third support program, the Hellenic Republic successfully achieved its two main objectives, to secure State control over the Greek electricity transmission system and enable the participation of a significant strategic investor, such as State Grid, in ADMIE."

Norton Rose Fulbright also assisted in drafting relevant legislation for the implementation of the transaction structure and subsequent amendments to the law and advised on other matters, such as the shareholders agreement with State Grid and obtaining necessary approvals from EU and national authorities. The deal closed on June 20, 2017.

The Norton Rose Fulbright team was led by Partners Vassilis Koroxenidis and Dimitris Assimakis, assisted by Senior Associate Minas Kitsilis and Associate Sergios Karotsieris in Athens. The team also included Partner Christian Filippitsch and Senior Associate Max Seuster in Brussels, who advised on merger control, state aid, and EU energy regulatory matters.

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