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Greece seals deal with Emma Fund for OPAP


The Hellenic Republic Asset Development Fund (HRADF) accepted on Wednesday the revised offer from the Greek-Czech investment fund Emma Delta for the acquisition of 33% of Greece’s OPAP’s shares. 

Emma Delta, a fund comprised of Greece’s Melissanidis Group, Czech private equity company PPF Group NV and Italy’s Lottomatica Group SpA, raised its bid by 30 mil. euros (payable in installments) to 652 mil. euros. (6.20 euro/share), while the Greek State will also receive 60 mil. euros (0.57 euros/share) in the form of cash dividend for 2012. 

The fund had initially offered 622 mil. euros for the acquisition of 33% of OPAP’s shares and the Hellenic Republic Asset Development Fund asked for an improved offer to at least 650 mil. euros. Greeces advisers, National Bank of Greece and Deutsche Bank, had estimated the stakes value at 610 mil. euros, and the independent valuator Duff & Phelps at a minimum 650 mil. euros.

According to the Hellenic Republic Asset Development Fund the completion of the transaction is subject to the regulatory approval. 

The “first major Greek privatization was successfully completed,” Greek Finance Minister Yannis Stournaras said, according to an official statement. 

As a result of the above mentioned deal, the ownership of Greece’s OPAP, who has been for 55 years under state control, changes. 

In its morning report Alpha Finance says that this is positive news for the Greek economy as a whole since OPAP’s privatisation was considered to be the benchmark of the privatizations’ program.  Apparently though the value of the minority shareholder is only relevant to NBG/Deutsche valuation (€610 million) and independent valuation made by Duff & Phelps (€650 million) and not to the management premium paid by Emma Delta. It could be argued that Emma Delta’s initial offer is fair and reasonable and very close to the market’s average target price (x-DPS) says Alpha Finance.


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