3 minutesIn line with its stated strategy to expand its power generation and trading portfolio in cooperation with partners, HELLENIC PETROLEUM SA announces the signing of a Memorandum οf Agreement (MOA) to create a strategic alliance with EDISON SpA, Italy’s second largest electricity producer and gas distributor.
According to the MOA, approved today by the Boards of HELLENIC PETROLEUM and EDISON, the strategic alliance will take the form of a joint venture (JV), with the scope of:
a) Creating in Greece a diversified power generation portfolio of approximately 1,500-2,000MW, including:
i. combined cycle gas turbine power plants;
ii. one lignite or coal fired power plant;
iii. renewable energy sources; and
iv. other business opportunities that may become available on the Greek market;
b) Trading and marketing of electricity;
c) Potentially, participating in co-generation activities, expanding operations in the Balkans and pursuing joint opportunities in the supply and production of gas.
The JV shall include:
a) a special purpose vehicle (the Holdco). HELLENIC PETROLEUM and EDISON shall participate in the Holdco’s share capital and management on an equal basis (50/50). The Holdco will control:
b) one or more subsidiaries owning the HELLENIC PETROLEUM assets and the EDISON assets (the Genco(s)) and
c) a subsidiary to carry out trading and marketing of electricity (Tradeco).
Third parties adding value to the strategic alliance could be considered by the JV parties as shareholders in the Genco(s).
HELLENIC PETROLEUM will contribute into the JV all its power generation assets, including Thessaloniki Power S.A., a company which owns a 390MW CCGT power plant in Thessaloniki, Greece.
EDISON will contribute its 65% participation in Thisvi Power Generation Plant SA, a company which is in the process of building a 420MW CCGT power plant in Thisvi, Greece, as well as the project under development for the construction of a 600MW coal-fired power plant in Astakos, Greece. Finally, EDISON will pay HELLENIC PETROLEUM an amount of €55 million, subject to further due diligence, and assume 50% of Thessaloniki Power’s debt.
The transaction is subject to all relevant regulatory approvals.
HELLENIC PETROLEUM’S CEO, Dr. Panos Cavoulacos, stated: «We are making today a significant step towards the development of a material, diversified power business in Greece, together with a strong strategic partner, with whom we share a common vision. The high level of expertise and long-standing track record of EDISON, with 11.4GW of installed capacity and 65.4TWh of power sales in 2006, together with the leading position of HELLENIC PETROLEUM in the energy markets of Southeast Europe, ensure the JV’s success in carrying out its ambitious business plan. I am sure this strategic alliance will prove beneficial to Greek electricity customers and the Greek power system».
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HELLENIC PETROLEUM
Founded in 1958, HELLENIC PETROLEUM is one of leading energy groups in Southeast Europe, with activities spanning over 10 countries in the region and across the energy value chain. In 2006, group net earnings amounted to €260 million, on total revenues of €8.1 billion. Its shares are listed on the Athens Exchange (ATHEX: ELPE), and has a market capitalization of about €3.7 billion.
HELLENIC PETROLEUM
Founded in 1958, HELLENIC PETROLEUM is one of leading energy groups in Southeast Europe, with activities spanning over 10 countries in the region and across the energy value chain. In 2006, group net earnings amounted to €260 million, on total revenues of €8.1 billion. Its shares are listed on the Athens Exchange (ATHEX: ELPE), and has a market capitalization of about €3.7 billion.
EDISON
Founded in 1883, EDISON is Europe’s oldest energy company. At the end of 2007, it plans to have an installed capacity of about 12.500MW. In 2006, it had revenues of more than €8.5 million and earned a net profit of €654 million. Its shares are traded on the Milan Stock Exchange and its market capitalization is about €11 billion. Edison has been present in Greece since 2002 through its Edison Hellas subsidiary.
Founded in 1883, EDISON is Europe’s oldest energy company. At the end of 2007, it plans to have an installed capacity of about 12.500MW. In 2006, it had revenues of more than €8.5 million and earned a net profit of €654 million. Its shares are traded on the Milan Stock Exchange and its market capitalization is about €11 billion. Edison has been present in Greece since 2002 through its Edison Hellas subsidiary.
ENQUIRIES
E. Stranis, PR and Corporate Affairs Director
Tel.: +30-210-5539241
Email: [email protected]
G. Grigoriou, IRO
Tel.: +30-210-5539109
Email: [email protected]
E. Stranis, PR and Corporate Affairs Director
Tel.: +30-210-5539241
Email: [email protected]
G. Grigoriou, IRO
Tel.: +30-210-5539109
Email: [email protected]