The joint venture’s (JV) objective is to develop, through subsidiaries, a generating capacity of more than 1,500MW, including 390MW which is already operational, a level of output equal to about 12% of the Greek market, thereby becoming the second largest electric power operator in Greece, as well as power trading and marketing activities.
The JV may also pursue investments in renewable energy sources in Greece as well as opportunities in power generation and trading in the Balkans.
Hellenic Petroleum will convey to the new joint venture its T-Power subsidiary, which owns a 390MW, combined-cycle power plant fueled with natural gas that is already operational in Thessaloniki, Greece.
Edison will convey its 65% equity interest in Thisvi, which is building a 420MW combined-cycle facility in Thisvi, in central Greece, and projects, currently in the study phase, for the construction of additional power plants. Under the agreements signed, T-Power and Thisvi will later be merged into a single company controlled by the JV.
Thisvi’s current minority shareholders including Hellenic Energy & Development and Halcor will have the right to purchase a sufficient number of shares of the company resulting from the merger to maintain an overall equity interest of 25%. Alternatively, Hellenic Energy & Development and Halcor will have the option of selling their equity interests to the JV.
The JV’s subsidiary created by the merger plans to further invest to support growth of its business in Greece and play a major role in the expansion of the electric power market in the future. Specifically, the agreements signed envision new projects that, when completed, could raise the installed capacity to 1,500MW-2,000 MW.
Umberto Quadrino, Edison’s CEO, said: With this transaction, Edison broadens the scope of its electric power operations to include Greece, a market that has been growing at a faster rate than the average for the EU. The co-operation with Hellenic Petroleum, as well as with major industrial Greek groups like Helleniki Technodomiki and Viohalco, will enable us to combine our forces to create the second largest operator in Greece and strengthen our position in the country.
