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 February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

ThyssenKrupp Says Submarines Part of Growth Story

Germany's Thyssenkrupp sees its submarine business as making an important contribution to its growth targets, the head of its Industrial Solutions business area said on Tuesday.

Two Newbuilds Delivered to Star Bulk

Star Bulk Carriers Corp. took delivery on February 27 of M/V Honey Badger (ex HN NE 164) and M/V Wolverine (ex HN NE 165), two 61,000 dwt Ultramax bulk carriers

Brazil Truck Strike Diminishes

Some truck drivers in Brazil continued blocking roads on Tuesday, slowing grains deliveries to southern ports, even as adherence to the strike diminished and a

Contracts

Maritech Delivers $14.5M Canadian Subsea Cable Installation

Maritech International  has completed a USD $14.5 million a subsea power cable installation in for New Foundland Power Inc., Maritech announced.   Maritech,

Former BP Boss Browne is DEA Chairman

Lord John Browne heads DEA's supervisory board * LetterOne co-owners Fridman, Khan also join * Unit changes name to DEA Deutsche Erdoel AG FRANKFURT, March 3 (Reuters) - DEA,

Holland America Line Appoints Geivett as Director, Social Media

Holland America Line has hired Kathryn Geivett as director, social media. In this capacity Geivett’s primary responsibility will be to drive, plan and oversee

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Navigation Pipelines Pod Propulsion Salvage Ship Electronics Ship Repair Sonar
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: 0.3122 sec (3 req/sec)