Troubled waters surround sale of Scaramanga shipyard

According to BusinessDaily sources, the tender is likely to receive a small extension, to coincide with another tender on the shipyard property managed by the Public Real Estate Company (ETAD).

While the new tender for the Scaramanga Shipyards enters the home stretch and offers from interested investors are awaited by July 7 the process remains unclear. Not only because it is not clear whether there will be an interest from more than one investor, but also because the delays in the Marine important armament program for new frigates makes it more difficult for investors to develop shipyards.

According to BusinessDaily sources, the tender is likely to receive a small extension, to coincide with another tender on the property of the shipyard managed by the Public Real Estate Company (ETAD).

In all cases, the two new calls for tenders were separated by law. 4796/2021, which means in practice that the tenderer of the special management call for tenders will be able to operate a shipyard, without necessarily being required to tender in the ETAD tender too.

This increases the chances of a successful deal, but the big unanswered question is whether there will be enough investment interest to proceed with the sale. Market watchers tell BusinessDaily that, apart from the Priovolos group (Pyletech shipyards), who said they would submit a bid, 2-3 other groups have expressed interest, one being from Greece. At present, however, none of these programs have openly expressed an interest in shipyards.

Thus, even the evolution of the process remains totally unclear: if there is only one valid offer, what happened in the previous call for tenders must be repeated, that is to say – say referred to the meeting of creditorsMinistry of Finance, Bank of Piraeus, employees) who will then decide if it can be accepted. If there are at least two valid offers, the procedure will automatically be judged in favor of the higher offer. It is recalled that in the previous call for tenders, the offer of Onex was canceled as symbolic and, therefore, only the offer of Priovoulos (15 million euros) was assessed but deemed too low.

Sources observing the deal say it would help a lot if carried out with a clear message in terms of naval weapons program. The co-production of three of the four new frigates at Scaramanga Shipyards would be a valuable asset for the purchaser and would completely change the appreciation of its value. However, although there are a number of attractive proposals for the new frigate, their final evaluation is expected in the fall, when the final US side proposal will be submitted. So those who are interested in tendering for shipyards cannot be absolutely sure what work they will undertake in the supply of frigates.

Thus, the only player who makes his presence visible is the Priovolos group, which however strongly criticizes the special administrator, in a way which indicates that it does not intend to improve its offer.

The logic of Priovolos proposal, as presented so far, is that it has a broad investment plan, amounting to 700 million euros, and that this plan does not include a significant expense for the initial acquisition of the shipyards. Against this backdrop, Pyletech last week accused the special administrator of leaving the fees for settling arbitrary settlements and issuing fire permits unpaid, meaning the buyer will incur an additional cost of 10 million euros.

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