Mytilineos Eyes Major Stake In Shipyard

Tuesday, November 21, 2000
Greek engineering and metallurgy group Mytilineos is eyeing a majority stake in Hellenic Shipyards in an effort to penetrate further into Greece's defense industry, a company official said. "The group is interested in acquiring a 51 percent stake in Hellenic Shipyards at Skaramanga, however, this will depend on the terms to be set by the Greek government," Vangelis Mytilineos said.

"The shipyard has liabilities of 100 billion drachmas and 2,200 employees. We are in talks with Greek and foreign parties to form a joint venture but more important will be securing better privatization terms."

Last week, in an amendment to a draft bill presented to parliament, Greece allowed for ETBA Bank that owns 51 percent of the shipyard to reduce its stake, opening the way for its full privatization.

While deep in debt, Hellenic Shipyards is considered attractive in large part because of its participation in the defense ministry's 4.0 trillion drachma armaments programs -- the building of warships and submarines for the Greek navy.

"A modern shipyard is effectively an assembly line and this can be fully complemented by Metka, which applies this logic in the case of ELBO, the Hellenic Vehicles Industry," Mytilineos said. In late August Mytilineos and subsidiary Metka agreed to buy a 43 percent stake in ELBO for 4.14 billion drachmas. "An investment of $100 million is absolutely necessary to upgrade Hellenic Shipyards and workers must have a 10 to 20 percent participation so that everyone has an incentive and benefits from its recovery," he said.

But finding funds to finance such an investment is a difficult task nowadays as share prices have significantly deflated on the Athens bourse. "We have significant liquidity of 30 to 40 billion drachmas today and a very good credit rating should we opt to borrow funds," Mytilineos said.

"We are not in a hurry for the shipyards. Don't forget that if we manage to turn around ELBO, this will be an advantage for our plans to take over the shipyards. We want their workers to see this."

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Zamakona Yards Delivers Tuna Freezer Vessel

Zamakona Yards yesterday celebrated in Getxo (Bizkaia) the delivery of the tuna freezer vessel LJUBICA, their latest construction to the owner group Jadran based in Ecuador and Panamá.

Pentair Reports 3Q 2014 Sales of $1.8 bi

Pentair plc today announced third quarter 2014 sales of $1.8 billion. Sales were up 3 percent compared to sales for the same period last year. Third quarter 2014

FortisBC Starts Expansion of Tilbury LNG Facility

FortisBC – a subsidiary of Fortis Inc. has officially started construction of its $400 million Tilbury LNG Facility expansion project today. The company is adding 1.

Contracts

Total CEO Killed in Moscow Runway Accident

Private jet collided with snow plow during takeoff; Total's CEO a defender of Moscow policies. Insiders Boisseau and Pouyanne long seen as potential successors.

Offshore Oil: Lamprell Completes Caspian Sea Drilling Unit

UAE-based Lamprell said that it completed construction of the second Caspian Sea jackup drilling rig, Mercury, for service in the Caspian Sea.   "I am delighted

Salamander Energy Updates on SONA Transaction

Salamander Energy said it has submitted a draft shareholder circular to the Financial Conduct Authority in relation to previously stated plans to divest of an interest in the Greater Bualuang Area.

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Offshore Oil Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1274 sec (8 req/sec)