Greek Liquidation Sale Begins: German Company Wins Privatization Bid For 14 Greek Regional Airports

Can you guess who gets the prize? That’s right, Germany’s Fourth Reich.

 

Greek Liquidation Sale Begins: German Company Wins Privatization Bid For 14 Greek Regional Airports

Who would have thought.

A German company, airport operator FRAPORT won the bid to operate and maintain 14 regional airports, considered to be top of the top in Greece. With an offer of 1.23 billion euro, the consortium of Fraport-Slentel (a unit of Greek energy group Copelouzos) won the bid to lease the regional airports for 40+10 years. Among the 14 regional airports are those on most popular tourist Greek islands like Mykonos, Rhodes, Kos, Santorini and Corfu. It is the first privatization deal under SYRIZA-ANEL coalition government and the biggest privatization deal in Greece since beginning of the crisis and the bailout programs in 2010.

The Deal

Total €1.23 billion for the whole period of lease

Annual rent of22.9 million per year 

25% of the before tax, interest, revenues amortization and fees for Civil Aviation Authority

Pledge to invest €330 million to upgrade the airports in the first four years and a total of €1.4 billion for the next four decades. (source)

Already in November 2014, Greece’s privatization company Hellenic Republic Asset Development Fund (HRADF) had declared Fraport-Slentel Consortium as the “preferred bidder” stating that its offer was “significantly higher” than the second best bid. The offers for the tender were submitted in October 2014.

Bidders – Consortiums

1. Argentina’s holding company CASA (Corporation America) – Greece engineering company METKA (Mytilinaios)

2. Germany’s FRAPORT – Greek Slentel (Kopelouzos)

3. France’s VINCI – Greek ACTOR (Bobolas)

The privatization deal will upgrade the airports in Greece’s most favorite tourist destinations improving the first image of the country to the million of tourists flocking each and every year. According to the UN World Tourism Organization (UNWTO), the number of international tourists visiting Greece grew by 17 percent in the first half of 2014.  This continues the strong performance of last year when Greece welcomed some 18 million international tourists.

For those curious who sits on the Fraport Supervisory and Advisory board, here is the answer:

Full article: Greek Liquidation Sale Begins: German Company Wins Privatization Bid For 14 Greek Regional Airports (Zero Hedge)

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