The Curious Story of a Greek PM & CVC Capital Partners

CVC Capital Partners, a French private equity and investment firm based in Luxembourg, has caused controversy in Greece after it was revealed that it had acquired a 10% stake in PPC, the Greek state-owned energy company. This move has raised concerns due to the close ties between CVC and the Greek Prime Minister, Kyriakos Mitsotakis. Mitsotakis previously sold National Insurance to CVC and his daughter was subsequently hired as a senior executive at the company’s headquarters in London.

The acquisition of the stake in PPC by CVC has also sparked controversy due to the current stock market scandal surrounding insider information at the company. Despite this, CVC has emerged as the only major investor in the Share Capital Increase (AMK) of PPC, with no other private investors expressing interest. As a result, CVC will become the largest private shareholder of the Public Electricity Company.

CVC has agreed to purchase 10% of PPC, and will acquire the shares either through participating in the AMK in place of the state or by purchasing enough shares to ensure that its percentage does not fall below 33.4%. According to reliable sources, CVC Capital is set to contribute around 150 million euros to the AMK, a significant sum for a company with a turnover of 6 billion euros.

In addition to its acquisition of PPC, CVC has also drawn attention due to its previous interest in buying a 49% stake in DEDDIE. However, its financial offer was ultimately lower than that of the Macquarie fund, which ended up acquiring the share package.

Furthermore, the hiring of Sofia Mitsotakis, the daughter of the Greek Prime Minister, as the head of the department of relations with shareholders and the investing public has also raised eyebrows. The appointment has led to accusations of nepotism and raised further questions about the connections between CVC and the Mitsotakis family.

References:

• LinkedIn: https://www.linkedin.com/in/sofia-mitsotaki-60156b123/?originalSubdomain=uk
• CVC 10% Stake in PPC: https://www.cvc.com/news/2021/2021-11-15-cvc-strategic-opportunities-ii-agrees-to-invest-for-a-10-stake-in-public-power-corporation/
• CVC 49% Stake in DEDDIE: https://www.ekathimerini.com/economy/1165424/fierce-battle-for-49-stake-in-deddie/
• National Insurance sold to CVC: https://www.marketscreener.com/quote/stock/NATIONAL-BANK-OF-GREECE-S-45521319/news/National-Bank-of-Greece-S-A-Announcement-NBG-reaches-an-agreement-with-CVC-Capital-Partners-Fund-32798503/