Public Power Corporation (PPC) on Wednesday announced it had reached an agreement with Macquarie Asset Management on the sale of a 49 pct ownership interest in Hellenic Electricity Distribution Network Operator (HEDNO).
HEDNO is responsible for the operation, maintenance, and development of the national power distribution network in Greece. The business serves more than 7.6 million customers across the Greek mainland and its islands via a 242,000-kilometre network of electricity distribution lines, interconnectors and substations.
Macquarie Asset Management’s investment will be made on behalf of institutional investors, including pension funds and insurance companies. Macquarie Asset Management will partner in the long-term ownership and development of the business with PPC, which will retain the remaining 51 pct ownership interest.
Georgios Stassis, Chairman and Chief Executive Officer of PPC, said: “The electricity distribution network is a valuable asset of PPC and its modernisation is our strategic priority. HEDNO’s investment plan is of utmost importance for our Group, for Greek consumers, the security of supply and the environment. With the strong support of such an international and experienced partner like Macquarie, together we will develop an extensive programme for the digitalisation and automation of our national network, so it can facilitate the increasing electrification of the economy and offer quality and reliable service to all citizens. At the same time, PPC will proceed strengthened as it implements its investment plan to accelerate the development of renewables, while financing an ambitious plan to expand into neighboring countries in the years ahead.”
Martin Bradley, Senior Managing Director at Macquarie Asset Management, said: “The transition to net zero emissions is reshaping how electricity is produced, transported, and used across the Greek economy. Significant investment in electricity distribution infrastructure is needed to facilitate this rapid change and ensure that households and businesses across the country continue to have access to safe, reliable, affordable, and sustainable electricity in the years ahead. We welcome the opportunity to make this major investment in Greece and to partner with PPC in the modernisation of the country’s electricity networks.”
HEDNO is the sole electricity distribution in the country with attractive growth prospects through an accelerated investment plan for the modernisation and digitisation of its network. The investment plan will also deliver greater value to its customers and support Greece’s energy transition to net zero.
As the world’s largest infrastructure manager, Macquarie Asset Management is supporting electricity distribution networks in Australia, Austria, Finland, Romania, Spain, and the United States invest to prepare for the low carbon transition.
Completion of the transaction will occur after the satisfaction of customary closing conditions expected by the first quarter of 2022.