Greece Agrees to Sell Stake in State-Owned Betting Firm

http://www.nytimes.com/2013/05/02/business/global/02iht-privatize02.html

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ATHENS — In Greece’s first major privatization deal since the country’s debt crisis erupted three years ago, the government on Wednesday agreed to sell a controlling stake in the state gambling company OPAP to Emma Delta, a Greek-Czech investment fund, Finance Minister Yannis Stournaras said.

“The first major privatization in our country has been completed successfully,” Mr. Stournaras said.

Emma Delta is buying a 33 percent stake in OPAP, making it the company’s largest shareholder. Greece’s state privatization fund said the purchase price was €652 million, or $860.5 million, with Greece also retaining €60 million in dividends.

The government last month rejected a €622 million offer from Emma Delta, which was the sole bidder for the stake.

Mr. Stournaras did not comment on what the deal might mean for OPAP’s 1,000 employees.

OPAP was Greece’s most profitable company last year, with net profit of €505.5 million. About two-thirds of that came from lottery games, with the rest from sports betting.

Mr. Stournaras said the deal would have “multiple” benefits for Greece as it “demonstrates the trust of investors in the Greek economy.”

He added that Greece’s privatization drive, which has failed to take off over the past three years, would contribute to “accelerating the country’s exit from the crisis.”