Tourism Industry News

MIG clinches deal to buy Greek OA

10/03/2009 09:59

aeroplaneThe government announced the successful conclusion of negotiations with Marfin Investment Group (MIG) for the sale of the national carrier Olympic Airways (OA). Under the deal, clinched late on Friday and announced around midnight, the state is set to receive the sum of 177.2 million euros for all OA assets and operations.

"The investment and legal advisors of the government inform us that their negotiations with MIG's consultants for the sale of assets of Olympic's flight operations and technical maintenance base had a successful conclusion. For the ground handling service, since talks between MIG and Swissport for the conclusion of the trade deal between them are continuing, an extension of one week to the exclusive negotiations with the state was asked for and given," Development Minister Kostis Hatzidakis announced.

The minister said that MIG and Swissport, which had only bid for ground handling services, had a week to conclude their negotiations but that if these fell through, MIG had also promised to buy the ground handling services itself for the price of 44.8 million euros, as set by independent evaluators.

In order for the agreement between the Greek State and MIG to be finalised, the deal must first get the approval of the European Commission, which has closely monitored the bid for the airline's privatisation and had appointed a special commissioner during the negotiations.

Following the Commission's official seal of approval, the agreement will then be set to the ministerial privatisations committee for evaluation. In an announcement on Saturday, the European Commission said it was informed of the positive developments concerning OA's privatisation and would officially take a position next Tuesday concerning the sale.


Source: TravelDailyNews



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