The sale of the majority stake in the Greek port of Piraeus to China’s port operator Cosco Group (Hong Kong) Limited has been ratified by the country’s lawmakers on Thursday, Reuters reports.
Under the agreement, the port operator will purchase 67 percent in the port for EUR 368.5 million (USD 411 million), representing a price of EUR 22 per share.
The company will initially purchase 51 percent in the port for an amount of EUR 280.5 million, and the remaining stake of 16 percent over five years, for EUR 88 million.
The deal includes the investment of EUR 350 million in the port over a period of ten years.
After it signed an agreement with the TAIPED (Hellenic Republic Asset Development Fund) for the transfer of the majority stake in the Piraeus Port Authority in April, Cosco Group (Hong Kong) Limited received approval for the new concession agreement in mid-June.
The Piraeus Port Authority (PPA) and Thessaloniki Port Authority (THPA) are being privatized as part of the country’s bailout plan.
Russia’s President earlier revealed his intention to bid for the port of Thessaloniki, the second biggest port in Greece, which is being privatized under the same terms as the port of Piraeus.
Greece plans to invite investors to submit binding bids for a majority stake in the port in Thessaloniki at the end of September.