Greece begins tender process for OPAP stake
Stake for sale increased to 33% from initial 29% - all parties must submit their interest by 19 October.
The Greek government has begun the international tender process for a 33% share of gaming monopoly OPAP.
The Hellenic Republic Asset Development Fund (HRADF), the country’s privatisation agency responsible for selecting a buyer, announced this morning that the tender will be open until 19 October.
Greece’s government had previously intended to sell only 29% of the company, however the decision to sell its entire 33% shareholding is likely to have followed pressure from international creditors such as the European Union, the International Monetary Fund and the European Central Bank. The EU member state is currently facing around US$460bn of national debt.
The tender process is expected to be conducted in two phases. Phase one will see candidates express their interest to participate in the tender process, while phase two will see “qualified interested parties” submit their binding offers.
The stake in OPAP, Greece’s most profitable state company with the exclusive rights to operate and manage lottery and sports betting games in the country, is likely to attract much interest. In a tough first half of 2012 the operator saw revenues fall by 6% compared to last year, however the total figure was still some 2.05bn with a net profit of 126.1m.
OPAP received a double blow earlier this month when the Greek government confirmed plans to set a new 30% levy on gross earnings from all its games and a flat 10% rate on all player winnings from 1 January 2013. The announcement saw its share price fall by almost a fifth.
The original 29% stake in OPAP was estimated to be worth around $1bn, however analysts predicted that the unfavorable change to the tax regime could see this fall significantly, with Stamatis Draziotis, an analyst at Eurobank, telling eGR at the time: “I think it’s more important that we have a clear tax regime now, so that any operator interested in bidding for the stake knows what the tax will be going forward. From a buyer’s point of view the changes should mean they won’t have to invest so much in the stake, as the value will be less,” he said.
Commenting on today’s announcement, Yiannis Emiris, HRADF’s CEO said: “Hellenic Republic Asset Development Fund is accelerating the pace of implementation of a comprehensive plan to restart the Greek economy. The programme aims to attract new capital investment, create new jobs and open up Greek markets to competition. The complete privatisation of OPAP will be carried out transparently, rapidly and with efficiency in order to achieve that aim.”