By Nektaria Stamouli

 

ATHENS--Greece's state privatization agency said on Wednesday it has completed the sale of its national railroad company TRAINOSE to Italy's state railways Ferrovie Dello Stato Italiane.

The signing of the deal worth 45 million euros ($48 million) follows the relevant approval by Greece's Court of Audit earlier this week.

Greece had been trying to sell the asset since 2013, but successive government changes held up the privatization. The Italian company was the sole bidder during the last stage of TRAINOSE's privatization.

Without the sale, the heavily indebted TRAINOSE would have had to return some EUR700 million in state aid to the European Union, forcing it to shut down.

"Ferrovie dello Stato Italiane Group is making an important commitment: to strengthen and develop TRAINOSE with its expertise and experience, thus creating a major provider of railway services," the state fund's CEO, Anthony Leousis, said in a written statement.

Greece needs to collect some EUR6 billion by 2018 under the country's third bailout package, signed in the summer of 2015.

 

Write to Nektaria Stamouli at nektaria.stamouli@wsj.com

 

(END) Dow Jones Newswires

January 18, 2017 10:02 ET (15:02 GMT)

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