COMMISSION DECISION
of 23 February 2011
on the State aid C 48/08 (ex NN 61/08) implemented by Greece in favour of Ellinikos Xrysos SA
(notified under document C(2011) 1006)
(Only the Greek text is authentic)
(Text with EEA relevance)
(2011/452/EU)
I.
PROCEDURE
II.
DETAILED DESCRIPTION OF THE AID
II.a.
BACKGROUND INFORMATION ON MINING RIGHTS AND PERMITS
II.b.
THE BENEFICIARY
II.c.
MEASURE 1: PRICE OF SALE BELOW MARKET VALUE
II.d.
MEASURE 2: WAIVER OF TAX AND REDUCTION OF LEGAL FEES
III.
COMMENTS FROM GREECE AND INTERESTED PARTIES
III.a.
COMMENTS FROM GREECE AND THE BENEFICIARY
III.b.
COMMENTS FROM OTHER INTERESTED PARTIES
IV.
ASSESSMENT OF THE AID
IV.a.
PRESENCE OF AID IN THE MEANING OF ARTICLE 107(1) TFEU
MEASURE 1: PRICE OF SALE BELOW MARKET VALUE
a.
Advantage
a.a.
Estimation of mines value
a.a.1.
Argumentation on the value of the mines
a.a.2.
Calculation of mines value
Income Approach |
Related Transactions |
Market Capitalisation |
The Income Approach provides analytical values for each of the three mining projects and based on metal prices that were known at the time of the sale of the Mines. When estimating the value of an asset in a transaction, one can take into account only factors standing at the time of the transaction. |
The base of the Related Transactions valuation is questionable, because two different mines cannot be the same. According to Behre Dolbear, related transactions are controversial, due to the fact that every mineral deposit, even of the same commodity, is different to some extent from other deposits, as regards mineralogy, mining conditions, metallurgy, environmental aspects, social issues present, ore grades etc. |
The Behre Dolbear report also includes a comment for the Market Capitalisation method, by American Appraisal Associates. According to that comment, the Market Capitalisation is recommended as a secondary valuation method or as a rule of thumb, suitable to check valuation determinations by primary methods. The Income Approach is a primary valuation method. Therefore, the Income Approach is the one to rely on. In addition, in the case at hand the Market Capitalisation method verifies only the value resulting from market capitalisations of first half of 2004, which are not accepted as this information is ex posteriori. Therefore, the Market Capitalisation method cannot be used even as a secondary valuation method. |
Behre Dolbear appears to put more trust in the value deriving from the Income Approach, since it states that ‘Historically, Behre Dolbear would have placed significant weight on the value derived by the Income Approach’ (summary of values in p. 43 of the Behre Dolbear report). |