15% of OTE and 17% of the PPC are on the table…

Today, Friday, the economy team will present to the cabinet under the leadership of the PM, a plan for mammoth privatizations, wrapped inside development and the fewer measures and sacrifices the people will have to bear. But they will also play the trump card for the sale of companies that are considered taboo, as the list will include the sale of 15% of OTE, and possibly 17% of the PPC.

The cabinet will mainly discuss the already deployed austerity measures for this year and for 2012. The "hot" issues for the increase in levies, charges and reversals in the SOEs will probably be discussed after Easter.

Thus, privatizations will be first on the list and the government is counting on them on them since according to the same sources, it will be setting a very ambitious target for total proceeds of up to 18 billion by 2015, surpassing the commitment for 15 billion million set in the memorandum.

The target of revenue from privatizations will mostly come from state holdings in listed and non-listed companies (about 10-12 billion), while a further 6-8 billion should come from the sale and use of public property.
 
The plans for OTE, PPC, EIDAP

Reportedly, the Finance minister will ask to be given the go-ahead so that the state would go to a sale of up to 15% of OTE. Eventually, this project will provide more than the option agreed with Deutsche Telekom for a package up to 10% for 400 million. The extra 5% but will be available at lower prices, given the current market value of the share. This way, the state’s share of 20% may even fall to 5%, which will be retained by the state (it includes 4% of TAP-OTE) to avoid losing its rights in the Organization’s administration (as laid out in the original contract with the Germans).

But it seems that a last-minute shift is recoded in the PPC. According to information, the state is planning to release in equity, shares of up to 17% from its 51%. Although PASOK ruled out the sale of PPC in the pre-election period, under the current economic conditions it was deemed appropriate to sell 17% of the Organization and keep 34% and its rights as majority shareholder and blocking minority at shareholders' meetings.

However, the implementation time of any such decision remains unknown and it may come after 2012 or 2013, as assessments and the separation of transportation and distribution are still pending.

The EYDAP and EYATH water companies are also joining the long list of small and large companies (OPAP, LARKO etc.) for which, however, the state will choose the solution of a strategic investor instead of securitization.