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Opap Signs Concession Deal
Tuesday July 30,2013 : GREEK LOTTERY CONCESSION DEAL SIGNED (Update)
Paves the way for completion of OPAP privatisation deal with Emma Delta
The Hellenic Republic Asset Development Fund has signed an agreement for the exclusive right to operate the Hellenic Republic's State Lotteries for a 12 year period with Hellenic Lotteries SA, a consortium of gambling monopoly OPAP (67 percent), Intralot lotteries Limited (16.5 percent) and Scientific Games Global Gaming S.a.r.l. (16.5 percent); and the only bidder in the process.
The controversial deal, a pre-condition to the privatisation sale of OPAP, was initially objected to by the successful bidder of a 33 percent stake in OPAP, the Czech-led private equity consortium Emma Delta, as being contrary to the interests of OPAP.
It deemed the 3.3 percent of state lotteries revenues that would go to the two consortium members as being excessive and higher than anywhere else in the world .
The deal comprises Euro 190 million in cash, and a guaranteed minimum income of Euro 580 million (over a 12-year period), totaling at least Euro 770 million, the HRADF said Tuesday.
Stelios Stavridis, chairman of the HRADF told the Financial Times that signing the lottery concession “sends a signal of our determination to move ahead with the [privatisation] programme, which is going to play a key role in Greece’s economic recovery”.
The concession agreement, already approved by the Court of Auditors, will be submitted to the Greek Parliament for ratification, but is still subject to approval by the Competition Authorities of Greece and Cyprus.
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