€700m Greek privatisation deal on the verge of collapse, threatening EU and IMF targets

Greece’s first major privatisation deal – the €700m sale of a 33 per cent stake in gambling monopoly Opap to bidding vehicle Emma Delta – is on the verge of collapse as Emma Delta tries to change the original terms of the deal, as reported by the Financial Times.

The FT has reportedly seen documents showing that Emma Delta now wants to cancel two key elements of the deal: a three year €110m contract with Intralot (Opap’s technology supplier) and a 12 year concession to operate the Greek state lottery in return for a €190m down payment and €50m annually.

The Greek privatisation agency Taiped, however, has rejected formal complaints by Emma Delta threatening to pull out if their demands are not met. This would be the second major privatisation Taiped has failed to deliver this month, following Gazprom unexpectedly pulling out of a bid for state natural gas supplier Depa. The sale of Depa and Opap were expected to cover around half this year’s €2.6bn target for privatisation revenues agreed with the EU and IMF, and failure to deliver here could spark some tension.