The Chinese state-owned company Cosco acquired a 51% share of the Piraeus Port Authority (OLP) for €280,500,000 on Wednesday, via the stock market.
The transaction could provide a positive boost to the tune of just under 1% of the GDP, limiting an expected recession.
COSCO bought 12,750 shares for €22 euros a piece, that is, with a considerable premium given that shares are currently trading for €13,90.
The Chinese company has an option for the acquisition of a further 16% for €88 million when an agreed upon roadmap of investment milestones has been reached. That will make COSCO the owner of the Port’s 67%. COSCO is expected to invest over €500 million to upgrade cruise and shipping container facilities.
The sale of Piraeus Port was suspended by the Syriza government in January 2015 but talks resumed following Greece’s third €86 bn bailout deal.
The Greek parliament approved the sale in June.
COSCO’s Shipping executive Wan Min rang the opening bell at the Athens stock exchange.
The Chinese State-Owned company first engaged in Greece in 2009 and has since more than trebled the cargo managed through the port, from 880,000 TEU to 3,36 million.