Two bids have been submitted for the Greek government’s 33% stake in Greek betting monopoly OPAP, according to a source close to the privatization effort. On Wednesday, Reuters reported that offers had been submitted by US hedge fund Third Point and Emma Delta, a group comprised of Czech investor Jiri Smecj and Greek ship owner George Melisanidis. A Greek media report claimed Italian lottery/betting outfit Lottomatica/GTECH held a 10% stake in Emma Delta, but Lottomatica has declined to comment on the report.
The government’s OPAP stake is believed to be worth up to €730m, but the bid details won’t be revealed for another few days, according to the Hellenic Republic Asset Development Fund (HRADF). The fact that there are just two bids from which to choose is undoubtedly a hard pill to swallow for HRADF, the body tasked with overseeing the privatization of many state-owned assets. The asset fire sale is required under the terms of the €240b bailout the cash-strapped country received from the European Union and the International Monetary Fund in 2010.
In November, the HRADF reported there were eight suitors for the government’s OPAP stake, including online gambling software outfit Playtech and Greek lottery/betting operator Intralot. But despite the government having made moves to sweeten the pot by extending OPAP’s online betting monopoly to 2020 and its lottery monopoly to 2030, a securities trader told Reuters the other six suitors “were probably too frightened” by the ongoing economic uncertainty hanging over the country, as well as the new 30% gross gaming revenue tax the government imposed in January.
HRADF is reportedly having an equally hard time attracting bidders for the Greek horseracing monopoly. The tender for the Hellenic Horserace Betting Organization (ODIE) has been extended by two weeks, with the new deadline set for April 26. Assuming more than one bidder actually expresses their desire to acquire, HRADF will compile a shortlist of likely lads who will then be compelled to submit binding financial offers.
