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SOCAR becomes the only major player in privatization race of Greek DESFA

10 June 2013 18:57 (UTC +04:00)

"Sintez has withdrawn from the bidding," one official close to the company told Reuters. Two Greek officials involved in the privatisation process confirmed the news, APA reports quoting Reuters.

Greek-Czech group PPF-Terna, the third possible contender, is also not expected to bid, another source close to the procedure told Reuters.

Russian energy giant Gazprom also will not participate in the privatization of the Greek gas monopoly DEPA due to a lack of guarantees that the Greek firm’s financial standing will not decline, a Gazprom spokesman said Monday.

“Gazprom has decided against filing a bid to participate in the DEPA privatization. We have not received sufficient guarantees that DEPA’s financial position will not deteriorate by the time the transaction is closed,” Gazprom’s Sergei Kupriyanov said in a statement, adding that the procedures for approving such a purchase would take about 12 months after the tender.

DEPA is already experiencing serious problems with non-payments, which creates “considerable risks affecting the company’s value, while the purchase price is suggested to be set now, without considering these factors,” he said.

The deadline to submit binding bids for DESFA and its parent group DEPA expire at 1000 GMT. Russian energy giant Gazprom is the only major energy major expected to bid for DEPA.