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Cosco agrees to pay 368.5m euros for control of key Greek port

Update Date：2016-1-21 16:50:33 Source：BeiJing Tannet Views：931

Chinese shipping giant Cosco consolidated its hold over the Greek port of Piraeus Wednesday, agreeing to pay 368.5 million euros for a 67 percent stake in the country's biggest harbor, after increasing its offer to clinch control over a key thoroughfare into Europe.

Cosco will pay 22 euros a share for the stake in Piraeus, according to the Athens-based Hellenic Republic Asset Development Fund. Cosco had been asked to submit a better offer last week after it emerged as the sole candidate bidding to buy the stake in Piraeus, an outcome that Greek officials called disappointing.

The offer accepted is a 70 percent premium to the closing share price of Piraeus Port of 12.95 euros Wednesday and values the entire business at 550 million euros. HRADF said the whole value of the Cosco agreement would come to some 1.5 billion euros, taking into account purchase price, investments, dividends and income from the concession agreement.

The result could provide Greek Prime Minister Alexis Tsipraswith some breathing space as he battles domestic opposition to state asset sales and tries to push through changes to pensions that have prompted strikes, including from seamen. Officials said last week the government would do its utmost to ensure Greece got the best possible price for a majority stake in Piraeus, a port that is key to China's plans to create a modern commercial empire pumping Chinese goods throughout the continent.

Hong Kong-listed, Chinese state-owned Cosco was the only confirmed bidder for the 67 percent stake in Piraeus, where Cosco already runs container operations at two piers. APM Terminals, owned by Danish shipping conglomerate AP Moller-Maersk A/S and Philippines-based port operator International Container Terminal Services Inc. were also short-listed but didn't put in a binding bid, dropping out at the last minute in the long-delayed sale.

Analysts see Chinese investment in Piraeus as a key part of China's One Belt, One Road policy, which envisages creating the 21st century land and maritime equivalent of the Silk Road. Since the Chinese shipping behemoth started container operations in 2009, traffic has surged at Piraeus, making the harbor one of the fastest-growing ports in the world. Premier Li Keqiang called Piraeus China's gateway to Europe in a visit to Greece in June last year.

The article transsshipment from China Daily

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