Greece's state privatization fund said Wednesday it has reached a deal with private shareholders of the country's largest international airport to extend a concession by 20 years.
German-based airport manager AviAlliance and its Greek partner, Copelouzos Group, have a 45% stake in Athens International Airport and were operating under a concession to run the airport until 2026. The companies submitted an improved bid for 600 million euros for the extension.
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Greece had promised to renew the airport agreement as part of its bailout agreement with international creditors in 2015.
The privatization fund holds a 30% stake in the airport, while the government has the remaining 25% share. The initial agreement to have private stakeholders run the airport was awarded in 1995.
The country must raise some EUR6 billion through the sale of state-controlled assets by 2018, according to the terms of its third bailout agreement in 2015.
The completion of the transaction is subject to approval by the European authorities and the Greek parliament.
Earlier this year, Greece handed over control of 14 regional airports to German airport operator Fraport in return for EUR1.2 billion, the biggest payment yet under the country's privatization program. Fraport, together with Copelouzos, took over the operation, maintenance and development of the airports for the next 40 years.
(END) Dow Jones Newswires
May 31, 2017 12:54 ET (16:54 GMT)