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German-led consortium wins 67% stake in Thessaloniki port for €231.9 million

Greek privatization fund  HRADF declared a German-led consortium comprising “Deutsche Invest Equity Partners GmbH”,  «Belterra Investments Ltd.» and «Terminal Link SAS» as the preferred bidder for the acquisition of  67% stake in Thessaloniki port, the second largest in Greece.

Deutsche Invest Equity Partners is a German private-equity, Terminal Link is a subsidiary of French CMA CGM – a container transportation and shipping company owned by a French-Lebanese businessman -, Belterra Investments belongs to Russian-Greek investor Ivan Savvidis.

According to a statement by Greece’ Privatization Fund, “in a landmark development for the HRADF, the Hellenic Republic’s Privatization Programme and Northern Greece, the consortium comprising «Deutsche Invest Equity Partners GmbH», «Belterra Investments Ltd.» and «Terminal Link SAS» submitted an improved financial offer for the acquisition of 67% of Thessaloniki Port Authority SA, as part of the respective international competitive process.”

The improved financial offer envisages payment of a consideration of EUR Two Hundred Thirty-One Million Nine Hundred Twenty-Six Thousand (€231,926,000) for the acquisition of 67% of shares in ThPA S.A.

In assessing the improved financial offer, HRADF’s Board of Directors took into account the two independent valuations for THPA and decided to declare the above-mentioned consortium as the Highest Bidder.

The total value of the agreement amounts to EUR 1.1 billion and includes among others the aforementioned EUR 231,926,000 offer, the mandatory investments amounting to EUR 180 million over the next seven years and the expected revenues from the Concession Agreement for the Hellenic Republic, in an expected amount in excess of EUR 170 million.

The total amount takes also into account the expected dividends receivable by the HRADF for the remaining 7.22% shareholding as well as the estimated investments (in excess of the mandatory ones) until the expiration of the concession, in 2051.

The above development signals a new era for the Port of Thessaloniki, the prospects of economic development of Northern Greece and the country as a whole.

A file relating to the tender process will be submitted to the Court of Auditors in the coming weeks for a pre-contractual review of the legality of the process; the share purchase agreement (SPA) will be signed, following the Court of Auditors’ approval. The completion of the transaction is subject to the competent authorities’ approvals and the satisfaction of certain further conditions provided for the share purchase agreement (SPA).

Morgan Stanley and Piraeus Bank acted as financial advisors, Freshfields Bruckhaus Derringer LLP and Alexiou – Kosmopoulos Law Firm acted as legal advisors, the Hamburg Port Consulting (HPC) and Marnet acted as technical advisors on behalf of HRADF, the Privatization Fund said in its statement.

The tender was opened in 2014.  Below an older HRADF statement:

On 14/4/2014 HRADF issued an international tender process for the sale 67% of the shares of OLTH, the company which has the right to operate the Port of Thessaloniki until 2051.

On 8/7/2014 the Board of Directors of HRADF decided that the following eight investors qualified for participation in the second phase of the tender process:

  • APM Terminals, B.V.
  • Deutsche Invest Equity Partners, GmbH
  • Duferco Participations Holding S.A.
  • International Container Terminal Services, Inc
  • Mitsui & Co., Ltd.
  • P&O Steam Navigation Company (DP World)
  • Russian Railways JSC / GEK TERNA S.A.
  • Yilport Holding, Inc

On 18/11/2016 the Board of Directors of HRADF approved the continued participation of each of Russian Railways JSC and GEK TERNA S.A. in the tender process in respect of Thessaloniki Port Authority S.A., independently, in accordance with the terms applicable to the second phase of the process.

The fund initially received three bids in March, which were revised over the past month and submitted Friday. The other two bids came from Philippines-based International Container Terminal Services and Dubai-based Peninsular and Oriental Stream Navigation Co.

According to crunchbase.com, the Deutsche Invest Equitity Partners is a Munich-based private equity investor in venture capital, growth and real estate with a focus on Germany, China and the USA.

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