Greece has given final OPAP bidder Emma Delta until 1 May to submit a higher offer for its 33% stake in the betting and gaming monopoly.
Greek privatisation agency HRADF confirmed yesterday that it had granted the consortium’s request for an extension to the deadline to submit a higher offer, which expired yesterday.
The vehicle backed by Greek shipping magnate George Melisanidis and Czech businessman Jiri Smejc now has until 14:00 Athens time on 1 May to raise its offer.
Emma Delta is understood to have only bid €622m for a stake with a current market value of €740m, following a disappointing response to one of the flagship privatisations in the Greek government’s drive to raise €2.6bn this year to secure further EU/IMF bailout funds.
Greece only received just one binding proposal from seven shortlisted bidders, after five decided not to table offers and HRADF decided not to unseal Third Point’s binding offer due to the US investment fund attaching certain conditions. Third Point had insisted on the right to re-sell within three years without HRADF receiving 50% of the capital gains.
Gaming companies Playtech, Intralot and Gauselmann were among those that decided against tabling concrete offers by last week’s Wednesday deadline.
The volatile investment climate in Greek is understood to have deterred bidders, as well as a 30% tax on gross revenue and 10% on winnings on all its operations from 2013 introduced by Greece last year to head off possible EU State Aid action. This is projected to wipe up to €280m off annual profits, which amounted to €531m last year.
Plans to extend OPAP’s monopoly online, restricting private operators to non-RNG online games such as live casino and tournament poker until 2020, are also now under scrutiny from EU regulators. The monopoly was ruled to be illegal as currently operated by Europe’s highest court, the CJEU in January, following joined cases brought by William Hill, Sportingbet and Stanleybet. A Greek court is due to deliver its verdict guided by the ECJ ruling later this year.
Article written by Peter Holmes
