Snam, Enagás and Fluxys awarded tender for 66% acquisition of DESFA

DESFA is the operator of the natural gas high pressure transport network of Greece, with approximately 1500 km of gas pipelines, and the Revithoussa regasification plant. Snam, Enagás and Fluxys, also partners in the project TAP, will contribute to the development of the Greek gas system in the coming years and positioning of Greece as a natural gas hub, which will provide a boost both for the domestic market and for other natural gas transit projects.

In addition, the consortium will provide DESFA with its technical and operational capabilities and will develop new uses of natural gas (such as the use of methane for transportation and the promotion of biomethane), to contribute to the process of reducing emissions.

Due to its strategic position in the Mediterranean, Greece is a key enclave for the diversification of the energy supply in Europe and for opening new natural gas routes in the continent.

TAIPED has accepted the offer of €535 million presented by the consortium last week to acquire 66% of DESFA. The consortium has already started the negotiations with a group of Greek and international banks to obtain financing without recourse for shareholders.

In 2017, DESFA registered a significant growth with respect to the previous year, with an EBITDA of around €177 million, which includes some recurrent – and a positive net financial position of around €5 million – with about €228 million cash available.

The signing of the agreement is pending of the procedures foreseen in the procedure of purchase and sale and in local legislation on privatisations. The closing of the transaction is expected to take place in the second half of the year, when all approvals are obtained from the competition authorities.

Read the article online at: https://www.worldpipelines.com/business-news/20042018/snam-enags-and-fluxys-acquire-66-of-desfa/