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    Hellenic's DEPA sale to close by end of June

Summary

The deal for Italgas to purchase Greek grid operator DEPA Infrastructure will transfer 6,900 km of grid lines and 509,000 gas redelivery points.

by: Callum Cyrus

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Complimentary, Natural Gas & LNG News, Europe, Corporate, Mergers & Acquisitions, News By Country, Greece

Hellenic's DEPA sale to close by end of June

Hellenic Petroleum's divestment of a 35% stake in Greek gas grid operator DEPA Infrastructure to Italgas will close by the end of June, the company said in its quarterly update May 12.

The €733mn ($760.7mn) deal is subject to relevant regulatory approvals. Hellenic will collect €256mn for its equity, with the remaining capital going to 65% shareholder state-owned development fund HRADF.

DEPA Infrastructure operates multiple gas distribution pipelines that reach end users. It owns a 51% stake in the Thessaloniki - Thessalia Gas Distribution system, 100% of the Attiki gas route and 100% of distribution grid operator Public Gas Distribution Networks. Together, the three gas players operate 6,900 km of grid lines and 509,000 gas redelivery points.

The division was split off from the commercial wholesale and retail activities unit, DEPA Commercial, to allow the latter division to be privatised. Hellenic Petroleum continues to hold a 35% shareholding in the commercial arm as well as the overseas operation DEPA International.

Hellenic Petroleum, in which HRADF is a 35.5% shareholder, is in the process of deconsolidating DEPA Infrastructre's revenue contribution, but said the wider DEPA group contributed €5mn ($5.2mn) over the course of the first quarter.