The Hellenic Republic Asset Development Fund said on July 20 that the agreement for the sale of DESFA’s 66% stake was signed between HRADF, Hellenic Petroleum and SENFLUGA Energy Infrastructure Holdings, the company set up by the Preferred Investor consortium comprising of the companies Snam, Enagás Internacional and Fluxys, for a total bidding offer of €535 million.

Greece’s Environment and Energy George Stathakis, SNAM CEO Marco Alverà, Enagás Internacional CEO Marcelino Oreja Arburúa, Fluxys Chief Commercial Officer Arno Büx, HELPE Director of Strategic Planning and Development George Alexopoulos and HRADF Executive Chairman Aris Xenofos signed the Sale and Purchase Agreement (SPA) that has been approved from the Court of Auditors and Competition Commission. The transaction is expected to be completed by year-end, HRADF said.

According to the Fund, this is one of the most successful tenders held by the HRADF, as it attracted considerable investment interest and was characterized by intense competition, resulting in revenue of €251.28 million for the privatisation program (the remainder of the price being paid to the Hellenic Petroleum). In addition, DESFA’s current business plan foresees the implementation of an investment plan of €330.66 million by 2023, HRADF said.

The agreement is of particular strategic importance for DESFA and its prospects as a member of a European consortium with international activities, and in total for the energy sector of Greece, the Fund said.

“A strong European consortium commits to invest in the future of DESFA, while giving a vote of confidence in Greece, which now has the potential to become an important international energy hub for natural gas due to its strategic position,” the HRADF Executive Chairman said.