ATHENS (Reuters) - Greece's privatization agency said on Wednesday it had accepted an improved 600 million euro ($674 million) bid from the operator of Athens airport to retain the concession for a further 20 years.
Under a third bailout signed with the European Union and the International Monetary Fund in 2015, Greece promised to renew the concession agreement for the airport, Greece's largest. The concession will now run until 2046.
Greece's privatization fund, HRADF, had on Tuesday sought an improved bid from Athens International Airport (AIA), which has been operating the terminal facility since 1995. It did not disclose AIA's original offer.
"AIA's improved offer provides a total cost of 600 million euros, including the corresponding VAT. The net proceeds from the privatization program amount to 483.87 million," HRADF said.
German-based airport manager AviAlliance and Greek group Copelouzos together have a 45 percent stake in AIA. HRADF holds a 30 percent stake and the Greek government 25 percent.
HRADF said it expected additional revenues for the state of around 894 million euros from the 20 year extension.
Completion of the transaction is subject to approval by European authorities and the Greek parliament, HRADF said.
($1 = 0.8902 euros)
Reporting by Michele Kambas; Editing by Mark Potter