Strategic Partnership Between GEK TERNA, Motor Oil

GEK Terna and Motor Oil on Thursday announced the signing of a binding agreement for the merger of their activities in the supply of electricity and natural gas and the generation of electricity from natural gas-fired units, a major deal with repercussions beyond Greece.

Specifically, Motor Oil will contribute 100% of retail power provider nrg, its 50% stake in the Komotini CCGT along with a cash amount 79 million euros. On its part, GEK Terna will contribute 100% of its retail electricity provider, Heron, and its 50% stake in Komotini CCGT, while it will receive a cash amount of approximately 128 million euros, which includes the aforementioned 79 million euros and additional cash amounts through a pre-defined permitted leakage mechanism, according to the press release.

Under the agreed framework a new corporate entity will be established, called UtilityCo, in which GEK Terna and Motor Oil will hold equal participation and voting rights. UtilityCo will eventually own Heron and nrg as well as the new natural gas fired unit (CCGT) in Komotini. Beyond Komotini CCGT, which has a capacity of 877 MW, UtilityCO will also have full control of the Heron II natural gas fired unit (CCGT) with a capacity of 441 MW, and also hold a 35%