Legal Aspects of the current privatisation program. A.S. Papadimitriou & Partners Law Firm

Transcription

1 Legal Aspects of the current privatisation program

2 What is being privatised: Listed companies - OTE 10% (Telecommunications) - OPAP 34% (Gaming) - Hellenic Petroleum 35,5% - ΛΑΡΚΟ 55,2% (Mining) * Requirement to issue a public tender for balance of shares

3 What is being privatised: Banks - Postbank 34% - Agricultural Bank 77,3% - Alpha and National Bank of Greece * Requirement to issue a public tender for balance of shares

4 What is being privatised: Utilities - Hellenic Post - Athens and Salonica Water - Athens and other airports - Piraeus and Salonica ports, other ports - Trains - Oil and gas rights (Crete) *Labour union objections

5 What is being privatised: Licenses and Concessions - Gaming (gambling) - Mobile telecommunications (extensions) - Roads - Mining rights - Marinas

6 What is being privatised: Real Estate - Hellinikon Airport - Hellenic Touristic Real Estate Company (ETA) 100% - Other real estate

7 Who owns what? Who sells what? - Interministry Committee on Restructurings and Privatisations (ΔΣΣΑ) - Transfer of assets to Fund for the Realisation of the Private Assets of the State <Law 3986/2011> (ΤΑIΠΔ) - Application of quick international tender procedure

8 What is being sold now: - OΠΑΠ, ΟΛΠ, ΟΛΘ, ΕΥΔΑΠ, ΕΥΑΘ - Roads <Olympia odos, Egnatia, Attiki, Kentriki> (sale of the rights of the state from the concerned concession) - Ports <Elefsis, Lavrion, Igoumenitsa, Alexandroupoli, Corfu, Patras, Volos, Kavala, Rafina, Iraklion> - South Kavala oil field (except those previously privatised). Crete?

9 What are the issues: - Any Investor will seek a safe and stable regulatory environment and clarity as to what are his prospects on particular regarding: - Applicable regulations - Labour relations - Tax legislation - Corporate legislation - Rule of law, courts, arbitration

10 Regulatory Environment - One-stop Shop / Fast Track - Archeological excavations Office for major private works/ Memorandum of Agreement - Forestry - Environment issues Council of State - License to operate

11 Regulatory environment - Sale of public land, expropriations if needed - Right to use or build on public land (δικαίωμα επιφάνειας) - Right to use or build on the seashore - Commercial Property, Intellectual Property Rights in line with EU regulations

12 Labour relations - Contracts of limited duration (up to 3 years) / no indemnity payable at the end of the employment period - Relaxation of the regime for overtime : 40 hours 48 hours / up to 256 hours per year over 32 weeks. Payment of overtime at the regular scale - Reduction of lowest payable salary for young workers (18-25 years old) up to 24 months by 20% - Relaxation of limitations on mass layoffs

13 Taxation issues -Of paramount importance to have a safe and stable tax regime -Regime of 1953 law on protection of foreign capital. Constitutional status (already applied with HOCHTIEF).

14 Corporate legislation -Easier to establish a company -Societas Privata Europea -Private Company (Ιδιωτική Kεφαλαιουχική Εταιρεία) - Commercial Registry Γενικό Εμπορικό Μητρώο (Γ.Ε.ΜΗ)

15 Rule of Law, Courts and Arbitration -Court system too cumbersome and lengthy -International Arbitration available but needs special permission from the State Legal Council (Nομικό Συμβούλιο του Κράτους)

16 Conclusions/Avoidance of complex issues and risks -Legal environment now more open and easy to operate -Regulatory environment more propitious -Political challenges to large privatisations -Approval of major privatisations by an act of parliament