Greece finalises lottery privatisation
OPAP-led consortium will operate Greek lottery for 12 years
Greece has completed the privatisation of its state lottery, giving a group led by OPAP the exclusive rights to operate the offering for a period of 12 years.
Greek privatisation agency Hellenic Republic Asset Development Fund (HRADF) yesterday signed the agreement with Hellenic Lotteries SA, a consortium of OPAP Investment (67%), Intralot Lotteries (16.5%) and Scientific Games Global Gaming (16.5%).
The group’s initial bid was turned away by the Greek State in December 2012, reportedly falling some 60m short of the asking price for the upfront licence fee. Press reports suggest the sum targeted by the government was around 250m.
The total value of the financial consideration for Greece includes the upfront fee of 190m in cash, and a guaranteed minimum income of 580m over a 12-year period, equating to a total amount of at least 770m.
The privatisation is part of Greece’s efforts to raise fund in order to tackle its huge levels of national debt.
Yesterday’s agreement, which has already been approved by the Court of Auditors, will be submitted to the Greek Parliament for ratification, while it is subject to approval by the Competition Authorities of Greece and Cyprus.
HRADF is also responsible for overseeing the government’s 33% stake in gambling monopoly OPAP for 652m to Emma Delta.