An Israeli-led consortium has purchased the majority shares in Greece’s state-controlled military vehicle manufacturer Hellenic Vehicle Industry (ELVO), Deutsche Welle Turkish reported on Tuesday.
The Israeli venture, made up of SK Group Ltd and Plasan Sasa Ltd, was bidding for control of 90 percent of the ELVO, according to an earlier report by daily Kathimerini.
According to the agreement signed on Tuesday between the consortium and the Greek Finance Ministry, Greece will participate in the share capital of the new company, ELVO 2020, with a share of up to 21 percent, the ministry said in a statement.
As it stands, the consortium will control 79 percent of ELVO’s shares.
Finance Minister Christos Staikouras told Greece’s state television ERT that the ministry had been working hard to revive the country’s defence industry, DW Turkish reported.
Under the new ownership, ELVO will start manufacturing Israeli armoured vehicles Guarder and SandCat.
ELVO had declared bankruptcy in 2014, and a dissolution process started by the Greek government was halted in 2015 as the government started to search for a private buyer.
Staikouras said the ELVO could “finally become a lever for growth for Greece’s economy,” on Tuesday, Kathimerini reported.