By A. Tsimplakis
[email protected]
The “honeymoon phase” in relations between Chinese multinational Cosco and Greece’s privatization fund (HRADF) regarding the Piraeus Port Authority (PPA), which the former assumed last August, appears to have encountered its first “hiccup”, as the Greek agency has voiced objections to a proposal modifying PPA’s charter.
The Chinese side, according to reports, wants to change the charter in order to allow, among other things, the convening of board of directors’ meetings in mainland China and Hong Kong.
According to information gathered by “N”, the privatization agency – officially known as the Hellenic Republic Asset Development Fund – has sent the proposal to various legal offices for an opinion, along with other requests by Cosco, mainly ones dealing with tax issues.
Nevertheless, a PPA general shareholders meeting on Friday approved the charter modification, with 72.6 percent of the shareholders present agreeing to the change, which means that beyond Cosco, several other foreign investors apparently provided a “vote of confidence” for the latter’s management of Greece’s biggest and busiest port.
On its part, HRADF tabled a letter stating that during the intervening period – between the first request by Cosco for charter revisions and Friday – it has contacted legal firms in China and Hong Kong for legal advise, “although no documented answers in relation to the questions have been received.”
In terms of the substance of the issue, one line of thinking is that PPA’s board of directors could legally convene at any time in China or Hong Kong, whereas another argument holds that HRADF could block such a prospect temporarily.
In a bid to downplay the difference, HRADF sources told “N” that the issue will be examined jointly with Chinese legal experts, and will soon be resolved.
On their part, PPA sources said the privatization fund did not actually veto such a prospect, but instead is taking a “wait-and-see” attitude and awaiting legal opinions.
