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The Greek government has provisionally accepted an offer of €368.5 mln from China’s Cosco Shipping Group for a two-thirds stake in Piraeus Port Authority (OLP).

Hong Kong-based Cosco raised its initial offer of €293.1 mln for the port operator, which is being privatised as part of a sell-off of Greek state assets. The Chinese state-controlled company was the only one of five shortlisted bidders to make a binding offer.

The deal includes commitments by Cosco to invest €350 mln in the port over the next decade and expected revenues from a concession agreement with the Greek state worth €410 mln, bringing the total value to €1.5 bn.

Cosco will initially pay €280.5 mln for a 51% stake in OLP, with the remaining €88 mln due in five years’ time, subject to the company honouring its investment commitments. The revised offer is equivalent to €22 per share.

The Greek government said the purchase marked a milestone in establishing Piraeus as a major entry port to Europe for Asian goods. The port has seen trade volumes increase by 276% since 2010 as the axis of Europe’s shipping trade moves from west to east.

‘This privatisation makes Greece a gateway for Asian products to enter Europe, strengthens the economy and boosts the country’s strategic importance in the region,’ Stergios Pitsiorlas, chairman of the Hellenic Republic Asset Development Fund (Taiped), told the Financial Times.

The completion of the transaction is subject to the competent authorities’ approvals and the satisfaction of certain further conditions provided for the share purchase agreement.

Morgan Stanley and Piraeus Bank acted as financial advisors, Freshfields Bruckhaus Deringer LLP and Alexiou – Kosmopoulos Firm acted as legal advisors, while the Hamburg Port Consulting (HPC) and Marnet acted as technical advisors on behalf of Taiped.