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

People & Company News

China Shipbuilder Rongsheng 2013 Revenue Freefall

During the year ended 31, December 2013 China Rongsheng, the largest non-state-owned shipbuilder in the PRC, reports that revenue of the Company was RmB1,343.6 million, a decrease of 83.

InterManager Welcomes New MLC Amendment

InterManager, the international trade association for the ship management industry, says it has welcomed the adoption of new measures to protect seafarers against abandonment.

China's Japanese Ship Detention Linked to Shrine Spat

Japanese Prime Minister Shinzo Abe has sent a ritual offering to the Yasukuni Shrine, seen by critics as a symbol of Japan's past militarism, media reported on Monday,

Contracts

Container Ship Delivers First Boxes to Great Lakes Port

The US Coast Guard say that the 'Fortunagracht', a 450-foot Dutch-flagged container ship, has delivered the first-ever load of containerized cargo to the Great Lakes.

Shipping Turns From Banks to Equity Markets for Cash

Shipping companies are turning to equity markets to fill a growing funding gap, betting that investors hungry for decent returns will provide capital to a sector

Keel-Laid for Navy's 10th LCS at Austal Yard

The Navy and Austal USA held a keel-laying ceremony for the future 'USS Gabrielle Giffords', the Navy's 10th littoral combat ship (LCS), in Mobile, Ala., informs

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Navigation Offshore Oil Pod Propulsion Port Authority Salvage Sonar Winch
rss | archive | history | articles | privacy | 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: 0.3090 sec (3 req/sec)