China’s Cosco consolidates equity control over Greek port of Piraeus

BEIJING – The Chinese shipping giant Cosco has acquired a 67% controlling stake in the Greek port of Pairaeus for EUR368.5 million, giving it control of the country’s biggest harbour and a key thoroughfare into Europe.

Having been asked to submit a better offer by Greek officials after it emerged as the sole bidding candidate, Cosco will now pay EUR22 per share for the stake, a 70% premium to the closing price of EUR12.95 on Wednesday.

Taking into account the purchase price, investments, dividends and income from the concession agreement, the Athens-based Hellenic Republic Asset Development Fund (HRADF) says the full value of the agreement comes to EUR550 million.

The China Daily observed that the result could provide Greek Prime Minister Alexis Tspiras with “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.”  www.webershandwick.cn (ATI).