Assen Yagodin, Chairman of Bulgarian Development Bank: The banking system has buffers for covering future problem loans There are prerequisites for doing business in our country, but less stringent regulations for companies are needed - Mr. Yagodin, one more difficult year for businesses, households and the economy as a whole passed. What lessons did banks learn after four years of crisis and what are your expectations for Bulgaria’s development in 2012? - We have arrived at several main conclusions from the past few years. The first one is that people should better live in accordance with their actual incomes and must ‘cut their coats according to the cloth’, as the saying goes. The second conclusion is that bankers should be very careful in their operation during a credit boom in order to avoid overheating of their activities. At a time of an economic downturn, problems such as the present ones occur, i.e. provisioning of bad loans and problems with the repayment of credits. The third conclusion is rather for State leaders who must know that even if there is easy access to external financing, they should not be tempted to have unreasonably large debt exposures, which would allow them an artificially high standard not corresponding to the economic reality. In general, the debt to GDP ratio is good in Bulgaria, as well as the level of the redistributive function of the budget and of the budgetary discipline. Our country can serve as an example according to many indicators. At the same time, we must be working actively so that the actual incomes of households start to approximate more intensely the average level in the European Union. - What measures should be undertaken to this end? - The main prerequisites for doing business in Bulgaria are in place. I do not mean only the low tax burden, the relatively low labour costs and the stable banking system, but also other factors such as the country’s geographic position and the current development of infrastructure. All these prerequisites for doing business are here, but less stringent regulations for companies are perhaps needed. On the other hand, employees must take efforts to achieve greater efficiency. We know that the incomes of Bulgarian employees are not high, but at the same time, productivity is lagging far behind that developed economies. - What are your expectations for the development of our country in 2012? - In general, the expectations for Bulgaria should be more positive, compared to many EU member states, given that the country does not have the burden of an excessive debt. But there are still many challenges, which our country faces because our economy is an open one and some of our neighbours are experiencing a strong downturn or stagnation, which will probably last longer than a year. There are other risks related to the excessive dependence of our country on the EU economies as well. Bulgaria will need time in order to shift to Eastern markets. This will have a recovery impact on our economy, but it will take time. Our prospects are better than those of other countries, but we cannot expect a significant change, compared to 2011. I am anticipating the same tough year, which would create a good basis for economic growth. - The Bulgarian National Bank reported a new growth of non-performing and restructured loans. They have already exceeded a total of BGN 9 bn. According to a recent statement of Ivan Iskrov, the banking system has enough resources to absorb even more non-performing loans. But when do you think they will reach their peak? - The banking system has two or three buffers that stand available in order to cover future problem loans. First, we have an extremely high capital adequacy. It has been repeatedly reiterated that European banks are seeking to reach a capital adequacy of 9%, given that our system has reported some 17% regarding this key figure. At the same time, the allowances, which have been allocated so far, have covered the problem exposures, which are following a continuing deteriorating trend or even incur losses. We also have a sustained profit within BGN 600-700 mln, which continues to be capitalized, and creates another buffer. The high liquidity is an expression of the high confidence in the banking system. After the onset of the crisis, there has not been a single case of a bank, which has referred to the regulatory authority or to the Government with a request for support.
Source: Class (04.01.2012)

3% of Bulgarian American Credit Bank’s (BACB) was traded on the stock exchange on Friday at the price of BGN 4 per share. The majority owner of BACB – Tsavetelina Borislavova announced in the beginning of December 2011 she would buy all shares of BACB through her Clever Synergies Investment Fund (CSIF). She currently holds a 56.3% stake at BACB following the latest capital rise. Following the capital increase CSIF’s share in BACB exceeded 50% which meant that the fund was obliged by the law to make an offer to the remaining shareholders to buy their stakes. Borislavova told an agreement had not been reached that CSIF would buy Gramercy’s over 33% stake at BACB.
Source: Capital (09.01.2012)

Sofia-bsed private investment company Clever Synergies Investment Fund (CSIF) raised its stake in Bulgarian-American Credit Bank (BACB) to 61.43% following a buyout bid, the lender said. CSIF, which previously held 59.37% of the bank, bought a further 506,620 shares in a transaction registered with the Central Depository on January 11, BACB said in a statement filed to the Sofia bourse on Tuesday. It currently owns a total of 15,166,642 shares in the bank. In December, CSIF offered to pay 4.0 levs per share to the rest of the bank’s shareholders.
Source: Darik Radio (19.01.2012)

Software development company Bianor has opened the reports season with a loss for the last quarter of 2011 amounting to BGN 41,000, the company’s report published on the BSE website shows. A year earlier the company registered a profit of BGN 26,000. In the end of the first quarter of 2011 an agreement for a revolving loan was concluded between UniCredit Bulbank and Bianor Services. According to its conditions, the subsidiary company could take advantage of an up to EUR 400,000 revolving loan distributed in two tranches for circulating capital needs (including salaries). Bianor Holding’s debts to bank and non-bank financial institutions decreased BGN 245,000 on an annual basis to a total of BGN 1.34 million by end-December 2011.
Source: investor.bg (20.01.2012)

BSE reports positive financial result after two years of losses The Bulgarian Stock Exchange ended 2011 with a positive financial result of BGN 382,000 after finishing two consecutive years with losses, showed data from the financial report of the company. In the two most difficult years for the Bulgarian economy, the stock exchange reported losses. These stood at BGN 77,000 in 2009 and at BGN 248,000 in 2010. The BSE report shows that the positive financial result is not due to the trimmed expenditures but to a real income growth. It results, almost entirely, from the sale of the state shares in EVN Bulgaria, which led to a 144% growth in trade volumes in the last quarter of 2011, compared to three months earlier. The sales of shares in the Corporate Commercial Bank were the other large deals in the fourth quarter of 2011. In the last days of 2011, two deals worth over BGN 10 mln were clinched and in December alone, more than 7.25% of the company’s capital was transferred to new owners. In 2011, the revenues of the stock exchange stood at BGN 3.034 mln, recording an increase of 23%, compared to 2010. Spending cuts were minimal - just BGN 89,000 less than a year before.
Source: Class (30.01.2012)

The Bulgarian Stock exchange said it suspended the shares of four companies from trading starting on Monday, as the date for the renewal of their registration in the country’s commercial register expired. The companies whose shares are banned from trading are Vazrazhdane 26 Holding AD - Sofia (in liquidation), Izotservice Holding AD - Sofia (in liquidation), MBE-Gara Hitrino AD-Shumen and Serdika-Kula AD–Kula, the Bulgarian Stock exchange said in a statement.
Source: Capital (06.02.2012)

Bulgarian Internet company Dir.bg said on Wednesday it has raised over 200,000 levs in an initial public offering on the Sofia bourse. The company sold a total of 74,800 shares at 2.7 levs each which was at the low-end of the pricing range for the listing, a Dir.bg statement indicated. Dir.bg said last month it planned to float 454,000 new shares, setting a pricing range of between 2.7 and 3.3 levs. The floatation comfortably cleared the preset success threshold of one subscribed share. “Clearly aware of the serious crisis on stock markets as well as of the expectations for a complicated 2012, we made this step towards a public status, which means that our main goal – to be listed on the stock exchange, is accomplished,” Dir.bg director Vladimir Jeglov said. After the ipo, the company’s capital has been raised to over 4.6 million levs while its assets stand at over 5.0 million levs.
Source: Class (09.02.2012)

The Bulgarian Stock Exchange (BSE) said on Tuesday it will extend the duration of its trading sessions as of July 2 in a bid to attract international investors and boost turnover. The pre-trading phase will start at 9.30 a.m. (0730 GMT) and will last until 10 a.m., followed by a ten-minute opening auction and a continuous trading session until 4.55 p.m., BSE said in a statement published on its website. A five-minute closing auction will begin at 4.55 p.m. The subsequent post-trading will end at 5.30 p.m.
Source: Capital (15.02.2012)

Pension funds may now invest in IPOs Bulgarian pension companies will be able to invest in initial public offerings (IPOs) and debt securities issued by international financial institutions, stipulate amendments to the Social Security Code adopted by the Financial Supervision Commission (FSC) and moved for coordination with the Ministry of Finance. However, the possibility to effect transactions in which the respective pension fund is a seller of financial instruments has been revoked. Investments in precious metals and oil will be banned as well since these are deemed to be more risky. Requirements to the insurance intermediaries (which do not exists in the present Social Security Code) are also stipulated, such as a certificate showing no previous conviction and adequate education of employees. If the amendments are adopted, pension companies themselves will be responsible for the professional qualification of their employees. According to Angel Djalazov, Deputy Chairman of the FSC responsible for Social Security Supervision, the amendments to the Code are intended to improve investment regulations. He explained that the amendments stipulate a reduction of the fees and charges payable by insured people and higher fines and penalties. The draft includes a provision that the 1% investment fee payable by all insured people each year will be reduced by 0.1% as of 2012, reaching 0.6% in 2016. Pension companies will deduct 5% from every social security instalment and the bill projects this percentage to decrease each year as of 2017 and reach 3% by 2020, the FSC explained.
Source: Class (24.02.2012)

Bulgaria's government plans to privatize this year a minority stake in the state-owned energy holding, which groups the country's top energy assets, the finance minister has confirmed. Talking in parliament at the end of the week, Simeon Djankov said the government aims to sell a stake of between 10 to 25% in state energy company BEH (Bulgarian Energy Holding) via a foreign stock exchange by the end of the year. The deal is expected to raise "several hundred million euros". Bulgaria's government is expected to list its 33% minority stake in E.ON and CEZ power distributors in April and May respectively in a bid to enliven the local stock exchange and boost revenues.
Source: Darik Radio (27.02.2012)

Forty Percent of Bulgaria’s Silver Fund Featured at EU Stock Exchanges As much as 40% of the funds in Bulgaria’s silver fund, meant for retirement payments, could be invested in stocks traded at some of the stock exchanges in the EU. This is provided in amendments to the National Welfare Fund Act, worked out by experts of the Finance Ministry. Another 30% of the accumulated resources in the silver fund can be invested in economies outside the EU, such as Bulgaria and Russia and ten percent can be invested in shares featured at the Bulgarian stock exchange.
Source: Standart (27.02.2012)

Companies on the stock exchange will be separated to weak and excellent. Companies, whose shares are traded at BSE-Sofia, will be divided into two new segments. Only companies with average monthly turnover of stock in the last six months over BGN 300 million and with over 150 transactions will remain on the basic market. A company should be trading for at least one year on the basic market, to have at least five completed financial years, 25% of the issue or shares for a minimum BGN 5 million in minority shareholders and a profit in at least two of the previous five years. In the Premium segment will be included only the most liquid companies. This is expected to increase the interest of investors, including overseas. Separately, a second segment – Standard, will be created to the main market. Companies must have average monthly turnover over BGN 4000 for half a year and the number of transactions should not be below 5 per month in order to be included in it.
Source: Standart (29.02.2012)

Around 200 companies will enter the elite on the Bulgarian Stock Exchange according to the new rules for segmentation. Only seven companies will be included in the Premium segment – First Investment Bank, Central Cooperative Bank, Chimimport and others. 80 companies will be included in the lower Standard segment.
Source: Standart (05.03.2012)

Bulgarian Government Sells 33% of E.ON for 90 M Levs Bulgaria's government is planning to list its 33-percent share in the energy utility E.ON, supplying electricity to the households and businesses in northeastern Bulgaria, at the Sofia Stock Exchange for about ninety million levs, well informed sources told the Standart. The listing is expected to take place this spring, after the general meeting of E.ON's shareholders.
Source: Standart (06.03.2012)

The Bulgarian Stock Exchange (BSE) said on Monday it will replace two of the 15 components of its blue-chip index SOFIX as of March 19. The Sofia bourse has decided to drop from the index local resort operator Albena [BUL:6AB] and Corporate Commercial Bank [BUL:6C9] and to replace them with tobacco group Bulgartabac Holding [BUL:57B] and real estate investment trust ELARG Agricultural Land Opportunity Fund [BUL:4EC], data published on the BSE website showed. The SOFIX index tracks the 15 most liquid shares on the BSE.
Source: Capital (13.03.2012)

BSE-Sofia ends 2011 with a profit of BGN 314,000 Last year, the Bulgarian Stock Exchange-Sofia JSC ended the financial year with a profit of BGN 314,000, while the previous two years it reported financial losses, showed the audited statement of the operator for 2011. The company estimated that the financial year reported a very low liquidity rate of the Bulgarian capital market as a result of the ongoing economic crisis in our country. The total turnover in shares (excluding the Special Investment Purpose Companies) on the regulated market reported a slump of more than 20% and there was a mere 33% turnover decline in the Official Market of Equities, Segment A. The report clearly indicated that the company's revenues reached BGN 2.99 mln or 2. 4% more year-on-year. Expenditures declined by 1.84% on an annual basis down to BGN 2.66 mln. At the end of December, the operator reported profit per share to the amount of BGN 0,05 and its own capital reached BGN 10.28 mln and this will increase by 3.15%. Experts calculated that three of the BSE indices reported a decline on an annual basis. The SOFIX blue-chip index ended 2011 with an 11.8% slump, while BGTR 30 had a 13.19% decrease. The lowest reduction was observed in the BG 40, which lost a mere 1.65%. The main decrease in the values of the indices were reported during the second half of the year, said BSE representatives.
Source: Class (30.03.2012)

Investors: Money from the Silver Fund might be disbursed to oligarchs “Investing part of the money from the so-called Silver Fund on the Bulgarian Stock Exchange (BSE) is a good idea. Investors’ concerns regarding this initiative are related to fears that the money might go to some oligarchs managing public companies,” commented BSE Executive Director Ivan Takev during a meeting dedicated to the prospects for the development of the stock market in our country. He explained to Klassa daily that no specific companies and owners had been referred to, but the investment community voiced such concerns during the discussions. “There is a wrong impression that the stock exchange or the mutual funds rely on the Silver Fund to raise the prices of shares to their 2007 levels. If there are fears that money will be drained through the BSE, we should be talking about everybody’s money," stated Takev. Let us remind our readers that Stoyan Mavrodiev, Head of the Financial Supervision Commission, was one of the staunchest opponents of the idea of investing money from the Silver Fund more actively. Vasil Velev, Chairman of the Bulgarian Industrial Capital Association and Executive Director of Stara Planina Hold, said during the meeting that the money in the Silver Fund will depreciate because of inflation if it stays deposited at the Bulgarian National Bank. “Under the current law, this money can be invested in foreign stocks alone and the Bulgarian pension fund is the only one in the world that cannot invest at home,” Velev added. Miroslav Marinov, CFO of Doverie Pension Assurance Company, objected by saying that the pension fund in Norway is not allowed to invest in Norway either. The Silver Fund in Belgium may invest only in the Kingdom of Belgium and can invest in other instruments only if the country’s debt is less than 60% of GDP.
Source: Class (11.04.2012)

Minister Dobrev: Black Sea keeps bulks of gas The largest companies in the energy production market have shown interest in the procedure for probing the gas deposits in Khan Krum block in the Black Sea. By now Exxon, OMV, Melrose Resources have stated their interest," Bulgaria's Minister of Economy, Delian Dobrev said while on a visit to Devnia after Bulgaria's PM, Boyko Borissov inaugurated the construction of a new production line in the cement manufacturing plant there. Offers are accepted by May 30th, they will be assessed by the middle of July and then the probing will begin, according to the minister. Dobrev believes that the intense investors' interest raises hopes for the existence of substantial deposits. They have been intensified by the fact that only 15-20 km away from the northern border of the Bulgarian block Romania declared a serious deposit of natural gas several days ago. The gas deposit is estimated to about 80 billion cubic meters. "We are working on 9 concrete projects and by the end of the year we will have clarity on all of them," minister Dobrev stated. "This is the first," minister Dobrev stated pointing at Devnia Cement and added that by the end of May another big investment in Bulgaria would be announced.
Source: Standart (11.04.2012)

A number of big Bulgarian companies are planning to list on the Romanian Stock Exchange. That will be possible after the Bulgarian and the Romanian depositories sign a deal for bilateral information exchange by the end of March, Mr. Vasil Golemanski, Executive Director of BSE-Sofia said. At present exchange is unilateral so that only Romanian companies can be traded in Sofia, whereas Bulgarian companies cannot be listed on the Romanian Stock Exchange. The BSE-Sofia expects a joint index which will measure shares of Bulgarian and Romanian companies.
Source: Capital Dàily (04.05.2012)

Belgium financial group KBC’ insurance department is the new owner of Bulgarian company DZI. Last week KBC bought 0.0243% more, which makes nearly 94 thousand shares. Deals have not been announced by Bulgarian stock exchange. The deal was concluded between 23 and 27th of April. It is expected that after the company’s acquisition KBC Insurance will be delisted as a public company on the stock exchange. Till the end of September the company obtained 90.35 % of DZI’s capital, but after the announced auction its share grew to 95 %. KBC and DZI did not announce their plans for the future business plans.
Source: Capital (08.05.2012)

The Central Depositories of Bulgaria and Romania have signed a cooperation agreement, thus establishing a direct link with each other. The agreement was signed by Bulgarian Central Depository CEO Ivan Dimov and his Romanian counterpart Adriana Tanasoiu. The Romanian depository is the first foreign depository institution to become a member of Bulgaria's Central Depository. "The direct link between the two institutions will allow us to carry out double listings and cross listings with low financial expenditures for the issuers. We envision deals to be completed on both markets with the opportunity of transborder settlements," Ivan Dimov commented, as cited by Bulgarian media. Tanasoiu pointed out that the agreement creates an opportunity for Romania to establish a stable settlement link with the Bulgarian stock market.
Source: Company information (16.05.2012)

A total of 302,653 shares of Bulgarian tobacco group Bulgartabac Holding [BUL:57B], were traded for 14.8 million levs ($9.6 million/7.6 million euro) on the Sofia bourse on Monday, stock exchange data showed. The shares changed hands at an average price of 48.989 levs, Bulgarian Stock Exchange (BSE) data indicated. Nikolai Kichukov, a broker with Sofia-based Elana Trading brokerage house, explained that the traded shares represent a 4.1% stake of Bulgartabac Holding’s share capital. The parties to the deal were not disclosed. The tobacco group’s shares closed up 7.46 % at 49.0 levs on the BSE on Monday. Bulgartabac, acquired last year by the investment arm of Russia’s VTB Group - VTB Capital, is currently undergoing restructuring.
Source: Capital (22.05.2012)

Central Depository chose four new members of its Board of directors on an extraordinary meeting. These are Apostol Apostolov-chairman of Private entrepreneurship bank Texim’s supervisory council, Ivan Takev- Bulgarian Stock Exchange’s executive director, Angel Rabadziiski – investment intermediary Karoll’s executive director and Teodora Angelova. In Central Depository’s new management solely Vasil Golemanski- Bulgarian Stock Exchange’s executive director remains. The main purpose remains privatization in package of both depositary and the stock exchange, which is hoped to happen by the end of the year. The new management has a term is five years.
Source: Darik Radio (22.05.2012)

In the frames of two deals on May 23 and May 25 Corporate Commercial Bank (CCB) has sold its 8.21% share of the privatized tobacco holding Bulgartabac, it transpires from an announcement of the bank to the BSE-Sofia. The highest value that the holding’s stocks have achieved last is BGN 48.8.
Source: Standart (29.05.2012)

Hydroizomat, the company for trade and production of insulation is to seek BGN 3.9 million from investors on the Bulgarian stock exchange. Financial Supervision Commission has confirmed he prospectus for public offering of 2.6 million new shares with a nominal of BGN 1 and an issue price for sale BGN 1.5. The new stocks will be offered on the exchange, the mechanism for such increases being against the old shares to be issued rights, which can be recorded by the new. In the case that investors do not want to use them, they can sell them on the exchange. In case of recording of all shares which Hydroizomat offers the company’s capital will increase from BGN 1.3 million to BGN 3.9 million.
Source: Capital (06.06.2012)

Study of Capman Green Energy Fund JSC: Energy and IT projects will stir up the stock exchange activity “The listing of innovative energy companies, with projects in the field of renewable energy sources and solar energy, and of IT enterprises might give rise to investment interest on the Bulgarian Stock Exchange -Sofia, (BSE),” reported a study of Capman Green Energy Fund JSC, conducted with the support of BSE. The survey included 100 business representatives, analysts, investors and journalists. Some 41% of the respondents believe that the energy sector would provoke strong interest on our stock exchange. Some 30% of the polled, share the opinion that projects in the IT field, such as the Facebook platform, would attract investors. Companies such as CEZ and E.ON, and those from the pharmaceutical industry are also among the proposals expected to foster investment interest. "Some reactions on the market show increasing interest in renewable energy sources (RES). There are many issues impeding the development of the traditional large RES plants. The future is in the small, flexible, more easily manageable, innovative projects in urban environments," said Nikolay Yalamov, Managing Director of Capman Green Energy Fund. Respondents in the survey believe that in order for trade on the stock exchange to be restored to its levels before 2008, the most important issue is for the proposed projects to be sustainably profitable. Some 45% of the polled persons indicated the companies’ transparency in the second place. “The so-called Retail segment, or retail investors, should be attracted again. Their portfolios shrank after the financial crisis,” stated experts. The international macroeconomic situation and the situation in Greece have also been closely monitored by the majority of respondents and will largely influence their investment decisions.
Source: Class (07.06.2012)

Expat capital, the investment compnay of the ex-minister Nikolay Vasilev acquired 22 million shares of producer of meat products Mekom-Silistra. This is equal to almost 40% of the company’s capital. The deal is assessed to BGN 2.244 million. The reached priced is BGN 0.102 per share. Nikolay Vasilev commented that it’s a fair price. The newly acquired share equals 39.28% of the public company’s capital. Stefan Raychev, major shareholder in Mekom confirmed that he has split with part of his share in the company, which previously was 81.33%. Another major investor in "Mecom" is "Dar Finance" with a share of 9.9%, controlled by the ex-banker Atanas Tilev.
Source: Capital (08.06.2012)

Plovdiv manufacturer of of cartons for cigarettes and filters Yuri Gagarin will take a 6-million loan from First Investment Bank (FIB), which will finance the purchase of Hungarian FILSTYLE-Hungary. Investment loan should be repaid for 10 years in equal monthly installments. The annual interest rate will equal the base rate of FIB for Euro plus a margin of 2.91%. The loan will be secured by a mortgage on property owned by Yuri Gagarin, with a carrying value of BGN 10.8 million. Decision to conclude the purchase of the Hungarian company was taken by management in early May. The goal is Bulgarian company to expand its business and to outsource part of manufacturing of filters and cartridges for cigarettes abroad. Hungarian company has land and buildings that can accommodate equipment, warehouses, office buildings and a well developed transport infrastructure. The very base is located in the periphery of Budapest.
Source: Capital (13.06.2012)

Bulgarian engineering, construction and energy group Enemona said that the value of the new construction and engineering contracts it signed in May totaled BGN 3.47 million ($2.2 million/1.8 million euro), VAT excluded. The company sees its total revenue at BGN40.5 million in the second quarter of 2012, down from BGN 42.6 million in the same period last year More than half of the company’s turnover comes from construction and contracts from energy efficiency. The biggest contract was signed with Electricity System Operator (ESO), the Medical University - Sofia and the German Loibl Allen-Sherman-Hoff. The company will work on energy efficiency of the Hospital St. Panteleimon in Plovdiv.
Source: Capital (15.06.2012)

"Intersolar Varna" is already listed on stock exchange Shares of Intersolar Varna JSC were listed on the Bulgarian Stock Exchange on Monday. The securities will yield a rate of return of about 7.5% over a period of 25 years. The issue approved for listing in mid-May comprises 26 073 000 shares with a par value of BGN 1. "Several pension funds have shown interest in the shares of the company", said Krasimir Uzunov, owner of the photovoltaic park. According to him, the project can be expanded by 20-30% because there are some more 70-80 decares of free land and a small reserve of panels. "In the summer period, revenues reach up to ˆ12,000 per day and in the winter - up to about ˆ8,000. It is interesting that our type of panels operates quite well both in sunny and in cold weather," said Uzunov, quoted by Klassa daily. He reminded that the solar park is situated on a hill - 7 km away from the sea - and that there is always a breeze cooling down the installation, so that the coefficient of efficiency of the panels is greater than elsewhere. "This is the only solar park in the country with clean documents. We have collected a total of 138 documents from different departments," said Uzunov. There was an idea for the shares of Intersolar Varna to be listed on the stock exchange in Warsaw. The businessman preferred to see first the activity of Bulgarian investors. According to the entrepreneur, one does not need to own 51% of the shares in a company in order to become a factor in it. "If someone is ready to pay the price, I will sell the company at a 100%, at a price of BGN 1.50 per share. Given that there are 26 million shares, this makes BGN 43 mln," said Uzunov.
Source: 3e-news (19.06.2012)

Bulgarian mutual funds have lost BGN 30 million of their assets in the first six months of the year. In the end of June they manage slightly more than BGN 432 million, which is a 6.5% decrease, as compared to December 2011. Mostly the drop in shares became reason for decrease in managed assets. Although buy back of shares, when an investor steps out of the collective scheme, has a role too. BSE’s shrunk liquidity made fund managers to increasingly turn to foreign markets. From more than a year, there are a lot of companies that make specialized contract schemes targeting only foreign markets. Managers wail over lack of sufficient and quality bond emissions. Purchases on the bourse are connected with the most liquid companies.
Source: Capital (04.07.2012)

Central depository thinks of the possibility to join Pan-European platform for clearing and settlement Target 2 Secutiries (T2S), prepared by the European Central Bank (ECB). This is to give chance of the Bulgarian capital market to enter a new era of its development with cheaper completion costs of transactions and better access to foreign investors. The entrance in the platform this summer is made by an entry tax. After the agreement is signed the Bulgarian company will be one of the fifteen new members who have expressed interest in joining T2S, The project started in 2006, as ECB’s initiative. Its operation envisages costñ of clearing and settlement across Europe to fall repeatedly. The main objective of T2S is to make Europe a better place for investment by creating a single market and services on settlement of transactions in securities.
Source: Capital (17.07.2012)

Bulgaria's financial regulator gave local express delivery company Speedy the go-ahead for a BGN 1.48 million initial public offering. The company will offer investors 1,482,200 shares with a nominal value of BGN1.0. The company's initial plans were enter the exchange, as it consolidate its existing core business with distributor of motor oils Omnikar BG. To that purpose Speedy group was created,which will remain non-public.
Source: Capital (23.07.2012)

Majority stake owner in construction-engineering company Enemona Dichko Prokopiev offered to buy out its share in Enemona. The offer touches upon 15 million shares and should be approved by the rest Enemona's shareholders. The package of shares, wanted by Prokopiev equals 2.74% of Energoni's capital. The offer is he to buy securities in real price of BGN 2.81 and together with that to take Enemona's obligation.
Source: Capital (25.07.2012)

Cigarette concern British American Tobacco (BAT) sold its share in Sofia BT.The deal was concluded on the bourse last week. The share represents 8.6% of the company’s capital. After the sale BAT keeps minimal share of 0.03 of Sofia BT’s stocks. Most probably two companies bought the shares. It is possible that Bulgartabac holding bought minor part of BAT’s shares, but certainly no more than 1.78% as per the last report it owns 78.22% of the capital of the cigarette factory.
Source: Capital (14.08.2012)

The funds managed by local and foreign investment funds operating in Bulgaria dropped by 8.2 percent or BGN 73.8 million in June from the same month the previous year to BGN 829.1 million. Compared to March, the decrease amounted to BGN 15.4 million, or 1.8%. At the end of June 2012 the assets of local investment funds amounted to BGN 354.9 million, compared to the same month of 2011 they decreased by BGN 37.5 million or 9.6 percent. Compared with March 2012 (BGN 366.2 million) assets decreased by BGN 11.3 million or 3.1 percent. At the end of the second quarter of 2012 the assets of Equity funds decreased by BGN 25.9 million (16.1%) to BGN 135.2 million, as compared to BGN 161.1 million in June 2011, and balanced funds fell by BGN 18.2 million (16.8%) to BGN 90.5 million, compared to BGN 108.8 million at the end of June 2011. Managed funds investing in bonds increased by BGN 6.6 million (5.5%) to BGN 127.4 million towards June 2012 compared to BGN 120.8 million in June 2011. Compared to March 2012 the assets of the funds investing in bonds decreased by BGN 2.9 million, or by 2.2 percent. At the end of June 2012 the assets of the fund, investing in stocks, have the highest proportion -38.1% of the total assets of local investment funds to 41.1% in June 2011 and 38.8% in March 2012
Source: Darik Radio (20.08.2012)

The sell of 154,000 decares of state-owned farm land by tender brought some life into BSE The Ministry of Agriculture and Food triggered the biggest rise in activity on the Bulgarian Stock Exchange (BSE) this summer with its announcement that state-owned grainfields, part of the Land Tenure Fund, are to be put on the market via public tenders in which only owners of registered compensation vouchers (RCV) are allowed to participate. Exclusively for Klassa.bg Tsvetoslav Tsachev of Elana trading commented this market development related to an open procedure for the sale of 154,000 decares spread all over the country, excluding Gabrovo and Sofia areas. After rumors about the pending sale of state land turned out to be true, the price of RCVs practically multiplied, the expert noted. "The latest information puts the total size of grainfields planned for sale at 154,000 decares, which is certain to generate a turnover of BGN 50 mln or more. Given the trading volume over the past few months it's safe to say that a great deal of those securities have already gone through the market," Tsachev added. RCV deals accounted for 70% of Tuesday's overall trading volume of BGN 673,000, with another 20% coming from transactions involving bonds of Bulgarian-American Credit Bank, according to BSE data. The sale of state-owned land is one of the measures the Government is taking to boost its revenues. In the spring of 2010, Miroslav Naydenov, Minister of Agriculture and Food, said that more than BGN 400 mln could come from the sale or the rent of land included in the state Land Tenure Fund.
Source: Class (22.08.2012)

The state will make another attempt to sell the building company Montagi SPJSC, the Privatization and Post-Privatization Control Agency (PPCA) reported. On several occasions in the past the company was placed for sale on the Bulgarian Stock Exchange, but never sparked interest among investors. Therefore, this time PPCA will rely on a public tender at a single stage. Competition is expected to be announced in a week or two. Montagi SPJSC has a trademark, six different certificates, it has 12 branches in the country and representation in Moscow. Its real estates have a total floor area of 383 thousand sq. m.
Source: Standart (28.08.2012)

One of notorious representatives of the dark side of Bulgarian capital market - company Polimeri JSC controlled by Nikolai Banev does not stop with the surprises. Management of the chemicals company offers to vote a dividend of nearly BGN 55 million, or BGN 22.10 per share, at the forthcoming general meeting in October. This happens amid almost stopped operations, increasing losses, number of complaints and lawsuits against the company for debt and even bankruptcy proceedings. Its assets are tendered and its employees only receive part of their salaries with several months delay. The data submitted to the BSE - Sofia for the upcoming General Assembly does not specify for which year is the profit that is to be distributed. One thing is clear - last year Polimeri reported a loss of BGN 10 million, a year earlier - BGN 31 million. The future state of the company is questioned by auditors as well. Auditor Rosa Georgieva stated that it is uncertain whether Polimeri will continue to operate as enforcement cases for nearly BGN 9.8 million have been brought against the company as to the end of March.
Source: Capital (04.09.2012)

ERG Capital-3 is due to sell properties for more than EUR 4 million ERG Capital-3, company with a special investment purpose signed preliminary contracts for sale of part of its properties. The fund announced even selling price, which can range from EUR 4.19 million to EUR 4.75 million. ERG Capital 3 owns properties in Sofia, Stara Zagora, Varna and Burgas, but most of them are vacant lots. One project solely was realized-that in Stara Zagora, where on a plot of with an area of 48,000 sq meters a retail park was built with tenants from furniture chains AIKO and Mobbo. "ERG Capital 3" remains the only existing out of a group of three companies to invest in property. The other two - "ERG Capital" 1 and 2, were in liquidation after the sale of their assets - commercial properties in Varna and Sofia.
Source: Capital (11.09.2012)

Futures Capital listed on the stock exchange, plans BGN 22 million in property investment Futures Capital AD-Sofia has applied for admission to trading on the Main Market BSE, shares Segment "Standard". The company’s investment program envisages purchase of land in the Danube valley, which is from first to third category and has a potential for average yield of 1 tone per acre. Initial stage of the programme includes purchase of 3 000 acres of agricultural land, which are to form medium in size farm on the basis of sustainable investment plan. The next stage involves the purchase of adjacent land and land consolidation. The estimated purchase price set forth in the business plan of the company is in the price range between BGN 685 and BGN 825 per acre. Besides, the company's investment objectives are to purchase up to 21,000 acres of land. The second aspect of the investment program provides for the purchase of landed properties (plots) in central urban areas with potential for development. The investment objectives of the Company in 2012 are related to research and purchase of property with a total area up to 20,000 square meters in the town of Dolna Banya Municipality Samokov. Not least, the company plans to acquire high quality properties, namely apartments of all kinds (one, two- roomed, studios, etc.) in developed ski resorts (mostly in Bansko and Razlog).
Source: profit.bg (12.09.2012)

Bulgaria’s financial regulator said on Thursday it gave the green light for the sale of the state-owned stakes of 33% in Energo-Pro Grid and Energo-Pro Sales on the bourse in Sofia. The Financial Supervision Commission (FSC) also said in a statement it admitted for trading on the regulated market 100% of the share capital of Energo-Pro Grid and Energo-Pro Sales. The two companies are majority owned by Energo-Pro Bulgaria EAD, a wholly-owned subsidiary of privately held Czech energy provider Energo-Pro. Energo-Pro said late last year it was set to acquire the majority stakes in E.ON Bulgaria Grid and E.ON Bulgaria Sales from E.ON Bulgaria, a unit of Germany's E.ON, for a total of 133 million euro ($171.5 million). The transfer of ownership of the majority stakes in E.ON Bulgaria Grid and E.ON Bulgaria Sales was completed on June 29 and the new owner renamed them to Energo-Pro Grid and Energo-Pro Sales earlier this month. A total of 434,940 Energo-Pro Grid shares and 495,330 Energo-Pro Sales shares will be offered for privatisation through the bourse, the FSC said. Energo-Pro Grid has a registered share capital of 1.318 million levs distributed in 1,318,000 shares with a face value of 1.0 lev ($0.66/0.51 euro) each. Energo-Pro Sales’ registered capital of 1.501 million levs is distributed in 1,501,000 shares with a face value of 1.0 lev each.
Source: Capital (14.09.2012)

EVN leaves the stock market EVN Bulgaria Elektrosnabdyavane ended its short 9-month career of a public company. Yesterday the Financial Supervision Commission (FSC) announced it has delisted the stock emission from the register of public companies and will end trade with the company’s stocks on the Bulgarian Stock Exchange. Similar development is expected for the stocks of EVN Bulgaria Elektrorazpredelenie. Closing the positions became possible after majority shareholder – the Austrian EVN, made a tender offer and acquired remaining stocks of the public companies. Yesterday it became clear that FSC has approved prospects for the public offering of the state’s 33% residual stakes in E.On Bulgaria Mrezhi and E.On Bulgaria Prodazhbi. This is the first step towards trade on SBE but the date of the auctions is still unclear. Most likely after the procedure is complete Energo Pro, the new owner of E.On’s business, will also leave the stock market.
Source: Trud (14.09.2012)

Plovdiv-based printing office Fort plans to expand its production, as it builds new warehouses. The planned investment is to the amount of EUR 3-4 million, which is to be insured by equity capital and bank credits. The company bought neighbouring lots, around Kuklensko shosse Boulevard. Capacity of Fort will be increased three to four times with the new investment. The new investment will create 35 new jobs, with which the company’s personnel will reach 110 people. At present Fort’s production is destined to the domestic market. Just 5-10% are exported.
Source: Capital (21.09.2012)

The Bulgarian privatisation agency said it has opened a tender procedure for marketing and legal status analysis and privatisation assessment on the sale of stakes in Sofia bourse [BUL:BSO] and the country’s Central Depository. Eligible candidates should have at least one successfully completed deal for the sale of firms engaged in financial instrument trading on regulated markets or should have participated as consultants in such transactions between 2005 and 2011, the agency said in a statement. Bids have to be submitted within 30 days following the tender’s official announcement. The deposit guarantee has been set at 10,000 levs ($6,600/5,100 euro), value added tax excluded. In March, Bulgaria’s finance ministry authorised the country's privatisation agency to prepare the sale procedure for the disposal of a 50.05% stake in the Bulgarian Stock Exchange (BSE) and a 43.7% interest in the Central Depository to a single strategic investor.
Source: Capital (26.09.2012)

Eurolease Auto extends 10 mln euro bond redemption by 12 months Bulgarian leasing company Eurolease Auto said its bondholders approved a proposal to extend by a year the redemption deadline on a 10 million euro ($12.9 million) debt issue. The decision was adopted at a meeting on September 24 called by the bond’s custodian bank, UniCredit Bulbank, according a Eurolease Auto statement filed with the Bulgarian Stock Exchange on Monday. Under the proposed restructuring plan, Eurolease Auto should make one 250,000 euro principal repayment at the end of September 2012 and two 500,000 euro repayments in March and September 2013 respectively. The company has so far repaid 8.75 million euro on the five-year bond issued in September 2007. The bond carries an interest rate equal to the six-month EURIBOR plus 5.0%, but no less than 6.0% per year, the company said. Eurolease Auto, a subsidiary of Sofia-based financial and insurance group Eurohold Bulgaria, has placed five bond issues since 2007 worth a total of 28 million euro.
Source: Capital (26.09.2012)

Bulgaria’s Corporate Commercial Bank (Corpbank) will replace real estate investment trust (REIT) ELARG Agricultural Land Opportunity Fund in the blue-chip index SOFIX, the Sofia bourse said. Corpbank will become a component of SOFIX as of September 28, the Bulgarian Stock Exchange (BSE) said in a statement on Wednesday. The SOFIX index tracks the 15 most liquid shares on the BSE. ELARG’s removal from the index follows the decision of Bulgaria's financial watchdog in July to revoke the REIT's licence at its own request after the company’s shareholders decided to liquidate it. BSE has four more indices. These include the broader BG40, comprising the 40 most traded shares, the BG-REIT index, which tracks the performance of real estate investment trusts, the BG TotalReturn30 index, in which companies with a free float of at least 10% have equal weight, and the CGIX Corporate Governance index, formed by companies strictly applying corporate governance principles. Corpbank (www.corpbank.bg) was the seventh largest bank by assets in Bulgaria at the end of July, according to central bank data. Twenty-four locally-registered banks and the branches of seven foreign lenders operate in the country.
Source: Capital (28.09.2012)

Chimimport Invest JSC has transferred all 855,394 shares or 70.64% of the capital of Assenova Krepost JSC that it used to hold. Chimimport Invest JSC has also transferred all of its 4,094,773 shares or 81.90% of the capital of Assenova Krepost Holding JSC. Shares were transferred to Chimimport Group SPJSC, which previously never owned shares in the two companies.
Source: money.bg (01.10.2012)

Paints producer Orgachim – Ruse will no longer be a public company, its management announced. Its three main shareholders acquired 100% of the company’s capital and requested that it be delisted from the stock exchange. According to unconfirmed information, they paid BGN 90 per share, which was the price that Orgachim’s stocks held for a long while on the stock exchange.
Source: Capital (03.10.2012)

Czech PPF Banka bought the main part of shares of the two Energo-Pro Bulgaria’s energy distribution companies. Towards 5th of October the bank owns between 21 and 26.6% of Energo-Pro Grid. Its share in Energo-Pro Sales was 16.7% towards the same date. Most certainly the bank bought them for its customer-the Czech Energo-pro. After the deal with the Czech company the same bank funded the process. Yet by the Agency for privatisation have not announced whether it sold the whole package of Energo-pro, or State Consolidation Company continues to hold share capital of both companies.
Source: Capital (09.10.2012)

The Bulgarian central depository said on Thursday it signed a link agreement with the Austrian clearing and settlement bank Oesterreichische Kontrollbank AG that would allow dual listings of companies on stock exchanges in both countries. “The direct link between the two institutions will allow dual and cross listings of issues at low costs,” the depository said in a statement, quoting its CEO Vasil Golemanski. The Bulgarian and the Romanian central depositories signed a similar agreement in May.
Source: money.bg (12.10.2012)

The access of Bulgarian publicly listed companies to the Vienna Stock Exchange has been facilitated by an agreement for cooperation signed between Bulgaria's Central Depository JSC and Austria's clearing settlement bank Oesterreichische Kontrollbank AG. "The direct link will make possible double and cross listing of emissions at low financial expenses of the emitters. Our forecast is that deals will be conducted on both markets with a possibility of trans-border settlement," Central Depository CEO Vassil Golemanski said. The first such agreement for cooperation between the central depositories of Bulgaria and Romania was signed in May 2012.
Source: Standart (12.10.2012)

In anticipation of the new time Intercapital property development is founded in 2005. The company has two property projects- sea and mountain. It utilizes both capitals, collected at the times of the stock exchange boom, as well as loans for their construction. The mountain project in Borovets is carried out only in rough construction. The fund succeeds in completing the sea one- holiday village marina cape, near Aheloi. It is operating already and brings assets to its owners by sale of apartments in it. Intercapital PD was the first Bulgarian company that realized public offering outside the country. Its shares are traded in Warsaw, too. The company tried to raise funds via capital increase to the amount of BGN 58 million. Raised capital reached just BGN 3.6 million, though. In the summer of 2010 the company lengthened maturity of its loan by three years-till August 2013 at a higher interest of 9.5%. At the end of last year Intercapital sold to VEI project Marina cape’s spa center and bowling hall at a price of EUR 1 million, VAT excluded. One day later VEI project gave back the site to the fund under two conditions. The first is the company to buy them back at the same price- EUR 1 million will the 30 of January 2013. Otherwise Intercapital is to pay financial penalty to the amount of EUR 80 thousand and gain the right to buy the property back to the finance lease with a rate of 12.5% per annum and maturity date in 2016 "VEI Project" financed the purchase of the property with bonds worth EUR 1 million, with a demand for 2 million, with interest of 8.5% and maturity date on 2 of December 2016 The deal is a step in the overall process of renegotiating fund’s debt.
Source: Capital (12.10.2012)

Tax on Stock Exchange Deals' Profit Will Chase away Investors "In case a tax on the profit from deals on the stock exchange be implemented this will chase away the few investors on the Bulgarian Stock Exchange (BSE) or will make them be quite passive," experts from the investment broker Karoll Capital Management stated in connection with the idea of levying a tax on the profit from stock exchange deals. "The reduced activity towards Bulgarian stock exchange market would mean less commission fees and revenues to the BNB and BSE in a moment when the procedure of the privatization of the BSE is under way. We have to judge if the effect will not be negative compared to the expected revenue to the state budget," Karoll experts also said. If the new tax be introduced it should refer only to the operation which are made after the implementation of the new tax. Otherwise it will be very difficult to calculate if the sale of a long ago bought stock will realize a profit or a loss because the investment intermediaries keep data of their clients 5 years back in time.
Source: Standart (16.10.2012)

Who wants to consult BSE privatization Nine consultants and legal firms are interested in the procedure ofr assessment and marketing of the privatization of the Bulgarian Stock Exchange. Only the companies that have bought the documentation will have the right to submit offers. By 16 October the companies to have bought documentation are KPMG Bulgaria, Deloitte Bulgaria, Bulbrokers Consulting, First Financial Brokerage House, CMS Cameron McKenna, MBC Securities Bulgaria, Sofia-based legal firms Sabev and Partners and Georgiev, Todorov and Co., as well as the Czech Patria Corporate Finance, Part of the Belgian KBC. Deadline for submitting offers is 26 October,
Source: Capital (18.10.2012)

Bulgaria will sell the state-owned 33% stakes in two units of power distributor CEZ on the Bulgarian Stock Exchange (BSE) starting October 29, according to the press office of the Privatization and Post-Privatization Control Agency (PPCA). The PPCA will offer 63 624 shares in power distributing unit CEZ Razpredelenie Bulgaria AD and 1650 shares in grid operating unit CEZ Electro Bulgaria AD with a par value of BGN 10 each. Investment intermediary Central Cooperative Bank AD will manage the sale. At the beginning of October, Bulgaria sold the bulk of its 33% stakes in the two units of power distributor Energo-Pro, Energo-Pro Grid AD and Energo-Pro – Sales AD. The public share offering on the BSE raised BGN 68 M. Energo-Pro acquired the two Bulgarian power distribution companies from E.ON in June, 2012.
Source: Capital (19.10.2012)

Sale of the two minority stakes in CEZ on BSE-Sofia to be launched on October 29 The public offering of the two minority stakes in the electricity distribution company CEZ on the Bulgarian Stock Exchange-Sofia (BSE-Sofia) will be launched on October 29, 2012. Within the framework of the auction, the Privatisation and Post-privatisation Control Agency will offer for sale 63,624 shares, representing 33% of the capital of CEZ Distribution Bulgaria JSC and 1,650 shares, representing 33% of the capital of CEZ Electro Bulgaria JSC. The sale of the two packages will be brokered by Central Cooperative Bank. Detailed information about CEZ Distribution Bulgaria and CEZ Electro Bulgaria is contained in the prospectuses of both companies, accessible on the website of the Privatisation and Post-privatisation Control Agency.
Source: Class (22.10.2012)

The state wants at least BGN 104 million of its stakes in CEZ Bids for the sale of 33% stakes in Energo-Pro’s two electricity distribution companies start on Monday. The stock exchange price of shares of the two companies is lower than the price offered in the bids. Shares of CEZ Distribution Bulgaria will be offered at the Bulgarian Stock Exchange at a minimum price of BGN 1,415 per share, while shares of CEZ Electro will be offered at a minimum price of BGN 8,660. The bid will start on October 29. The government had planned to sell its minority shares in the electricity distribution companies a few years ago. It sold its majority packages of 67% each several years ago. The two companies provide services to Western Bulgaria and are the biggest electricity distribution companies in Bulgaria. Their profit decreased last year in spite of their growing revenues. CEZ Distribution has a positive result of nearly BGN 14 million and assets of BGN 720 million. Assets of CEZ Electro amount to BGN 218 million, while its profit for 2011 stands at BGN 2.4 million. The investment intermediary of CEZ' public offering is the Central Cooperative Bank.
Source: Capital (24.10.2012)

Bulgaria to put up for sale on bourse stakes in three cos Bulgaria will hold a public auction on the Sofia bourse for 100% of local companies Ira Commercial and Artur and a minority stake in Technoresource, the country’s privatisation agency said on Thursday. The privatisation agency will offer investors 28,741 shares of Burgas-based trade company Ira Commercial, 925 shares of Smolyan-based Artur and eight shares of another trade company, Technoresource, based in Gorna Oryahovitsa, it said in a statement. The agency has set the starting price at 4.21 levs ($2.79/2.15 euro) apiece for the shares of Ira Commercial, at 4.0 levs for Artur and at 186 levs for Technoresource. The auction will take place between the sixth and 16th working day after a notice is published in the State Gazette.
Source: Darik Radio (26.10.2012)

Deloitte Bulgaria, Bulbrokers Consulting and Czech Patria Corporate Finance, which is part of the Belgian group KBC, handed out offers in Agency for privatisation’s competition for preparartion of assessment and marketing of Bulgarian stock exchange and Central deposiroty‘s privatisation. The end term expired at the 26th of October. Now the Agency is to check papers and in ten day’s time it is expected to announce the winner. The winner is supposed to make marketing, legal and financial analysis of the two companies. It is to prepare privatisation assessment and information memoranda for the two companies. The advisor will have one more month to finish these tasks. The state wants to find the most suitable purchaser for the two companies. Prospective purchasers will be required to meet at several quantitative criteria: at least EUR 2 billion average monthly total turnover of the stock market and / or the average total number of derivative contracts (such as on currency, goods, non-ferrous metals, indices, financial instruments, etc. .) of at least 2 million over the past two years at the end of 2011Further requiremts are to be cleared out in future.
Source: Capital (29.10.2012)

Small investors bid for CEZ shares on BSE Yesterday’s auction on the Bulgarian Stock Exchange (BSE) for the privatisation of CEZ power distribution companies was characterised by strong participation of small investors and speculators. Unlike expectations, banks and large institutional investors did not purchase significant quantities of stock. The majority owner also chose a strategy for participation different from the two previous privatisation procedures in the energy sector, if it participated in the auction at all. This is the conclusion after the issues put up for sale were not sold on the first day of the offering, reported Darikfinance. The State’s proceeds from the sale of shares in CEZ electricity distribution companies on the first day of the auction exceeded BGN 82.5 mln. Paper worth BGN 25 mln in CEZ Distribution JSC and stocks worth over BGN 53 mln in CEZ Electro Bulgaria JSC were purchased. Orders were accepted until 11:00 hrs. The residual shares of the packages that were not sold yesterday will be put up for sale today and in the remaining 30 days until the official end of the offering, if it does not end earlier.
Source: Class (30.10.2012)

Luxembourg-based E. Miroglio Finance has purchased 370,000 shares in Bulgaria's Bulgartabac Holding [BUL:57B], equivalent to 5.02% of the tobacco group's share capital, Bulgartabac said on Monday. The transaction, whose value was not disclosed, was registered with the country’s central depository on October 31, Bulgartabac Holding said in a bourse filing. A total of 607,006 shares, equivalent to a stake of 8.24% in Bulgartabac Holding, were traded for 45.5 million levs ($29.7 million/23.3 million euro) on the Sofia bourse on October 29. Bulgartabac Holding said on Friday that the shares were sold by local company Bromak Invest that bought them four days earlier for about 37 million levs. Bulgartabac, acquired last year by VTB Capital, the investment arm of Russia’s VTB Group, is undergoing restructuring.
Source: Capital (06.11.2012)

Bulgaria to Sell 49% Stake in International Plovdiv Fair After the successful privatization of the state-owned 33% stakes in the three power distributors through the Bulgarian Stock Exchange (BSE), the government is preparing to offer for sale its 49% stake in International Plovdiv Fair. Citing government sources, Capital daily informs that the official decision for the offloading of the minority stake in International Plovdiv Fair is to be taken in the next week or two. The procedure for the sale will include the selection of an investment intermediary, the preparation of a prospectus, and the listing on the BSE, with the public offering expected to take place in the first quarter of 2013 at the earliest. In July 2012, Bulgaria's Supreme Court of Cassation (VKS) conclusively declared businessman Georgi Gergov as the majority owner of International Plovdiv Fair (IPF). The third-instance court did not admit an appeal of the decision of the Plovdov Appellate Court, thereby restoring the ownership of the Fair to Gergov. In July 2011, the Plovdiv Appellate Court overturned the ruling of the Plovdiv District Court cancelling the two capital hikes of the International Plovdiv Fair company and returning the ownership of the majority stake in the Fair to the state. The Plovdiv Appellate Court confirmed the legality of the capital hikes from 2006 and 2007, which made Gergov's company "Puldin Tourinvest" owner of over 50% of the capital of the IPF. According to Capital daily, Gergov may try to buy the residual state-owned 49% stake in International Plovdiv Fair if he manages to find the resources, given that all of his companies have been pledged with banks.
Source: Standart (06.11.2012)

Due to financial problems Holding Roads transferred stakes of its key subsidiaries, toghether with other newly registered companies. The holding’s subsidiary Roads and Motorways transferred its minority stakes in its core operating companies - Holding PCT and Road Engineering M. The reason is cited as "need to cover current obligations to third parties." Buyer of these shares is Railway Infrastructure-Holding Company’s subsidiary. The deal is struck for 32.16% of Road Engineering M’s capital and for 32.17% of Holding PCT’s. Their direct byuer is DVTG Bulgaria. Holding Roads announces in addition that irrespective of the deal it continues to exercise control over the two companies, based on the concluded in 2010 contract with the other shareholders.
Source: Capital (07.11.2012)

Courier company Speedy starting secondary offering of its shares on the Bulgarian Stock Exchange from November 14. Up to 20% of the capital will be offered to investors who can buy shares for only eight days. Popular price range is between BGN 51.5 and BGN 55 per share, giving the company a market capitalization of BGN 76.3 million to BGN 81.5 million. CEO of Speedy Valeri Mektupchiyan is the major shareholder with 67% in Speedy Group, which is the sole owner of a courier company. Currently Speedy has no plans to raise funds through the stock market, because according to Mektupchiyan the company is in good liquidity position. He admitted that in the future there may be a possible IPO of shares, as raised funds will be used to expand the business of his company abroad. The company looks mainly towards the Romanian market because of its similarity to the Bulgarian. The goal is to find a suitable local partner. Mektupchiyan estimates that such a project will take about EUR 10 to 15 million.
Source: Capital (08.11.2012)

Bulgarian Telco Officially with New Owners Bulgarian telecom Vivacom (BTC) now has a new majority owner, after NEF Telecom Bulgaria sold last week its 93.99% stake to the newly registered company Viva Telecom Bulgaria. The information has been posted in the weekly bulletin of the Central Depository, Bulgaria's "Capital" weekly reports. The transfer of shares, however, has not been done on a regulated market nor was a block transaction recorded on the Bulgarian Stock Exchange. The possibility remains that the deal was made through two intermediaries which are not currently known. BTC have confirmed Monday morning the deal in an official press release stating that the transfer of shares has become a fact after the approval of the entire plan to restructure BTC. "As result (VTB Capital) and Corporate Commercial Bank acquire the majority stake in the restructured group. The deal led to lowering the total debt of the group from EUR 1.7 B to EUR 588 M through paying off debt, transformation of shares and writing off the remaining debt," the statement reads. BTC further point out changes in the lending contract and documentation related to it, approved at the shareholders meeting on October 8, 2012, have become effective Monday. Now, the majority owners have to make a trade proposal to minority ones, some of which, such as the Artio Investment Fund, have blocking quotas. The lenders' restructuring talks aimed at securing better terms and reducing the debt, which was burdening BTC, its parent company NEF Telecom Bulgaria and the holding company that owns NEF Telecom. Under the proposed restructuring, CCBank and VTB Bank have offered to pay EUR 130 M in cash to senior lender for a majority stake, with EUR 588 M of reinstated loans. A minority stake in BTC will be owned by the senior secured creditors. On October 22, The European Commission gave the green light for the purchase of Bulgarian telecom Vivacom by the country's Corporate Commercial Bank and the Russian bank VTB. The official notification about the approval of the deal was published in the newspaper of the EU on September 22 and provides joint control on the telecom through acquisition of shares. After reviewing the facts and circumstances of the transaction, the European Commission announced that it authorized the acquisition, thus lifting the last hurdle before the final purchase, the Bulgarian National Radio reported. The November acquisition of Vivacom by Bulgarian lender Corporate Commercial Bank and Russian peer VTB Capital was made possible by the approval of the company's shareholders of the proposed debt swap plan. Corporate Commercial Bank and VTB Capital are acquiring at least a 73% stake in the debt-ridden telco, which is expected to be equally distributed between them. The tie-in submitted a bid for Vivacom at the end of July and creditors accepted the offered terms a week later. CCBank holds nearly half of the deposits by State-run companies and is widely known as the government's darling. Vivacom - formerly known as the Bulgarian Telecommunications Company (BTC) - has gone through a number of controversial privatization deals. The long-drawn-out and widely criticized EUR 230 M sale deal for 65% stake in Bulgaria's telecom operator BTC was sealed at the end of February 2004 after nearly two years of procedural predicaments, legal and political battles. Months later Icelandic businessman Thor Bjorgolfsson bought Viva's stake for EUR 300 M and resold it to the investment company AIG Central Europe for EUR 1.08 B. AIG Investments acquired 65% of the former state-owned telecommunications firm in May 2007. Then in August of the same year it upped its investment to 90%. AIG Investments was rebranded to PineBridge Investments ahead of its acquisition by Richard Li's Pacific Century Group (PCG) in 2010. Dubai-based Oger Telecom was the closest to taking over the management of the company following negotiations that dragged on for nearly half a year. The deal however failed because the final offer was not satisfactory, according to insiders. The telco was also eyeing a Turkish new owner earlier this year, but the sale deal failed. Vivacom is the third largest mobile operator in Bulgaria after Telekom Austria 's Mobiltel and Greek OTE's Globul.
Source: Capital (13.11.2012)

Industrial holding Bulgaria considers issuing of a new emission of obligarions, in order to pay back its present one and to fund investment in its companies. General meeting of shareholders is appointed for December 17th. Proposal for issuing of debentures to the amount of BGN 30 million with a term of two years is to be approved of then. Interest will be set at 6.5% per year. Debentures can be turned into shares. Money from the newly issued stocks will be used for partial funding of ship Diamond sky’s construction, as well as for expansion of Dockyard Port Burgas, in addition to other smaller projects. At present Industrial holding Bulgaria has a single emission of obligations to the amount of BGN 21.7 million, which has a term till October 2014.
Source: Capital (14.11.2012)

At least three candidates for the privatisation of BSE expected At least three operators are expected to join the race for the privatisation of the Bulgarian Stock Exchange (BSE), according to comments of sources familiar with the matter to DarikFinance.bg. They stated that the interest in the divestment of the stock exchange is great and three major operators are willing to participate in the procedure. At the end of September, Ibrahim Turhan, BoD Chairman and CEO of the Istanbul Stock Exchange, voiced an intention to bid for the state-owned share of BSE. In May 2012, the Vienna Stock Exchange also announced interest in BSE. Then, Michael Buhl, CEO of the Vienna Stock Exchange, said that “there are many benefits from such a deal for a big operator, including the Vienna Stock Exchange, and it would be worthwhile to acquire the State’s share of BSE”. Several months ago, BSE’s CEO Vasil Golemanski commented that the Government will try to attract five candidates for the privatisation of the stock exchange - operators which have shown interest in BSE over the years
Source: Class (15.11.2012)

Bulgarian provider of express delivery services Speedy [BUL:0SP] launched a secondary public offering (SPO) on the Bulgarian Stock Exchange on Wednesday. By 1146 GMT, a total of 3,508 Speedy shares, equivalent to 0.24% of its capital, were traded for 180,662 levs ($116,985/92,371 euro), bourse data showed. “The company is drawing investor interest, mainly from the retail segment. Having in mind the trading volumes on the stock exchange, dealings in Speedy shares are within expectations,” Angel Rabadjiiski, executive director of Karoll, the investment intermediary in charge of the SPO, told SeeNews over the phone. In the SPO, the company is offering up to 20% of its share capital. The pricing range for the offering, which will last up to eight days, was set at 51.5 to 55.0 levs per share, which gives Speedy a market capitalisation of 76.3-81.5 million levs. Rabadjiiski said that the company does not aim to sell out the share offering at once. If it does not manage to accomplish the desired free float, the offering could be reopened next year after Speedy publishes its full-year consolidated report. The SPO move seeks to ensure the backing of investors for the future development of the company, especially across the region where Romania is currently in focus, Speedy's executive director Valeri Mektupchian said last week. It also aims to put Speedy's business in a more transparent and analysable context so that strategic investors could better appreciate its performance and seek an entry into the company when the timing is right, he added. Speedy (www.speedy.bg) operates a fleet of 500 delivery vehicles, six sorting centers and 64 domestic offices as well as one office each in Bucharest and Thessaloniki.
Source: Capital (15.11.2012)

Bulgarian winery Todoroff plans to sell its 14.5% stake in Todoroff Property Management to local company BG Immobilien. The proposal will be voted on at a general shareholders’ meeting scheduled for December 14. The offer is 2 954 shares, owned by Todoroff property management to be sold at a nominal of BGN 50 per share for a total of BGN 147 700. Todoroff AD will propose its shareholders to appove of sale of its agricultural lands to its subsidiary Todoroff Agro EOOD.
Source: investor.bg (15.11.2012)

Bulgaria's Capman Green Energy Fund to buy Romania’s Solar East Energy Company Bulgaria's Capman Green Energy Fund [BUL:C4P] said it signed a preliminary contract for the acquisition of a 100% stake in Romania’s Solar East Energy Company for 250,000 euro ($319,400). The deal is expected to be finalised by April 4, 2013, at the latest, Capman Green Energy Fund said in a bourse filing on Tuesday. Solar East Energy Company owns a project for the construction of a 1.0 megawatt photovoltaic park in Rovine village, in Romania’s southern county of Ialomita. The Romanian company posted a 67,599 lei ($19,070/14,910 euro) loss in 2011, according to data from the finance ministry's website. Capman Green Energy Fund (www.capman.bg) focuses on power generation from renewable energy sources. It is listed on the Bulgarian Stock Exchange.
Source: investor.bg (22.11.2012)

Bulgaria’s Solarpro Holding wraps up 1.0 MW solar project in Macedonia Bulgarian provider of products and services for the solar industry Solarpro Holding [BUL:0S8] said on Thursday it has completed the construction works on its first solar park project in Macedonia. Cracking the neighboring Macedonian market is part of Solarpro Holding's wider push for a regional footprint in a bid to temper the business risk associated with government support for renewables. The 1.0 megawatt (MW) solar park, located in the Macedonian city of Bitola, was officially put into operation on November 20, the company, part of Bulgarian financial group Alfa Finance Holding [BUL:X26A], said in a filing to the Sofia bourse. The investor in the project is Macedonian company Torpedo Solar GT with Solarpro Holding responsible for the design, construction, operation and maintenance of the facility. The funding was provided by Skopje-based Capital Bank, also part of Alfa Finance Holding. Work on the project started in mid-2012 by the namesake Macedonian arm of Solarpro Holding which was registered in early March. As of June, Solarpro Holding (www.solarpro.bg) had a portfolio on its home market comprising a total of 32 solar parks in various stages of completion with total nominal capacity of almost 100 megawatts-peak. The company is controlled indirectly by Alfa Finance Holding with a 58.9% stake alongside local company Solar Ventures with an 11.6% stake.
Source: money.bg (23.11.2012)

Bulgarian financial watchdog strikes Orgachim from register of public cos Bulgaria's financial regulator has struck local coatings producer Orgachim from the register of public firms, the company said on Tuesday. The Financial Supervision Commission adopted the decision on November 21, Orgachim said in a statement to the Sofia bourse. Malta’s Whitebeam Holding, Cyprus’ Tidal Wave Trading and Romania's Policolor bought out the Orgachim shares they did not already own in a buyout bid earlier this year.
Source: money.bg (28.11.2012)

Russians want the rail transport Probably, a large Russian private carrier stays behind the interest stated through Citibank for the privatization of BDZ-Freight Services, said the Executive Director of the Agency for Privatization Emil Karanikolov. According to him, there is serious interest in the cargo unit of BDZ by three investors. These are the largest private rail operator in Romania (Grup Feroviar Roman), the Czech company Advanced World Transport and large private Russian carrier. Karanikolov stressed that Russian interests no longer comes from the state-owned Russian Railways Company and the private company Freight One. Privatization procedure of BDZ – Freight Services is the second in a row since the first attempt failed due to lack of investor interest. If the state fails to sell the company now, it will remain for the next government as Karanikolov said that the government will sell up to 30 March. This is due to parliamentary elections next year and the wish not to mix the privatization with political games. This means that by the end of March 2013 the sale of BSE, Agency Diplomatic Properties, VMZ-Sopot and BDZ - Freight Services must be finalized.
Source: Standart (04.12.2012)

KCM 2000 may ente a European stock exchanges in 2014 KCM 2000 has not given up the idea of entering one of the European stock exchanges, which is probably to take place in 2014. For now company’s top priority is competion of investment for renewal of lead and zinc production (Thorpe Project – to the amount of BGN 195 million) in 2013. KCM 2000 is preparing changes in the management structure, as well. Operational management will be handled by Rumen Tsonev, who will become the new CEO of KCM 2000 on the Jan. 1. Other priorities for the coming 2013 include: absorption of BGN 65 million on the Thorpe project, putting into operation the new zinc plant in March and testing of new lead plant in October. Another BGN 3 million will be invested in the lead manufacture, too. Investment in the purchase of Bulgarian mining deposits via joint venture Varba Batantsi is determined as strategic. The goal in 2013 is extraction of 12,000 tons of polymetallic ores
Source: Capital (05.12.2012)

Bulgaria's UniCredit Bulbank has sold out for an undisclosed sum its minority stakes in the two local power distribution units of CEZ Bulgaria controlled by Czech energy group CEZ, the units said on Tuesday. On November 1, UniCredit Bulbank sold 10,412 shares of CEZ Razpredelenie [BUL:3CZ], or 5.4% of the company's capital, CEZ Razpredelenie said in a filing with the Sofia bourse. On the same day, the lender disposed of 495 CEZ Electro [BUL:1CZ] shares, representing 9.9% of the company's capital, CEZ Electro said in a separate filing. CEZ Electro supplies electricity to over 1.9 million customers in the Sofia region and parts of western and northern Bulgaria. CEZ Razpredelenie, which operates in the same region, is licensed for the transmission and distribution of electricity and the operation of the distribution grid. State-owned shares in the two companies, representing stakes of 33% in each one, were listed on the Bulgarian Stock Exchange on October 29 and by November 2 Bulgaria had sold them, raising 115 million levs ($76.8 million/58.8 million euro) in sale proceeds. UniCredit Bulbank, controlled by Unicredit Bank Austria, was the biggest Bulgarian bank by assets at the end of October, according to data from the Bulgarian central bank. Bulgaria has 24 domestically-registered banks and branches of seven foreign lenders.
Source: Capital (05.12.2012)

Czech co Patria Corporate Finance to advise sale of Sofia bourse Bulgaria's privatisation agency has hired Czech company Patria Corporate Finance to advise the sale of the state-owned stakes in the operator of Bulgaria's stock exchange [BUL:BSO] and central depository, the bourse said on Wednesday. Patria Corporate Finance will do the marketing and prepare a due diligence study, an information memorandum and an appraisal of each of the two companies, the bourse said in a statement. In March, Bulgaria’s finance ministry authorized the government's asset-selling agency to prepare the sale of a 50.05% stake in the Bulgarian Stock Exchange (BSE) operator and a 43.7% interest in the Central Depository to a single strategic investor. At the end of September the privatisation agency opened a tender procedure for an adviser to the sale of the two companies. Back then it said eligible candidates should have at least one successfully completed deal for the sale of firms active in trading in financial instruments on regulated markets or should have had advised such transactions between 2005 and 2011.
Source: Capital (06.12.2012)

The custodian bank of a 5.0 million euro ($6.5 million) bond placed by local agribusiness company Farin [BUL:9KDA] has called the paper for early redemption, a bourse filing indicated on Monday. United Bulgarian Bank (UBB) said in the filing it is taking this step because Farin did not comply with decisions taken at a meeting of its bondholders on November 23. Farin’s remaining obligations on the bond, including interest and principal payments, equal 4.02 million euro. UBB will call an extraordinary meeting of Farin bondholders where they will decide how to go about settling their claims.
Source: Capital (11.12.2012)

Bulgarian medical equipment producer Etropal [BUL:5EO] said on Tuesday that local insurer Euroins [BUL:5IC] has raised its stake in the company to 5.37%. Euroins bought a total of 25,000 shares in the medical equipment maker, equivalent to 0.5% of its equity, and currently owns some 268,400 shares, Etropal said in a bourse filing. No financial details were disclosed. Etropal last traded on the Bulgarian Stock Exchange on Monday, ending flat at 3.4 levs ($2.2/1.7 euro) in a volume of 18,300 shares.
Source: money.bg (12.12.2012)

Bulgaria’s Corpbank buys 4.95% stake in Health & Wellness SPV Bulgaria’s Corporate Commercial Bank (Corpbank) [BUL:6C9] said it acquired 4.95% of the share capital of local special purpose vehicle Health & Wellness [BUL:4H8]. Corpbank bought 220,800 Health & Wellness shares in a deal registered with the central depository on December 11, the bank said in a bourse filing on Tuesday. The value of the transaction was not disclosed. Corpbank (www.corpbank.bg) was the seventh largest lender in Bulgaria among 24 locally registered banks and branches of seven foreign-based banks at the end of October. Health & Wellness last traded on the Bulgarian Stock Exchange on June 29, ending flat at 48 levs ($31.9/24.5 euro).
Source: money.bg (13.12.2012)

The state is to sell its share in International fair Plovdiv AD via the Bulgarian stock exchange. The company is to be taken out of the prohibitory list for privatization. The state share is to the amount of 49.63%. It is to be sold through the Bulgarian stock exchange. Turning the Fair into a public company will make greater transperancy and thus Financial Supervision Commission is to improve control over the company.
Source: Standart (14.12.2012)

After Blagoevgrad-BT is no longer a public company two other companies are to replace its position in bourse indeces BG40 and BG TR30. In place of Blagoevgrad-BT AD Blagoevgrad in the composition of the stock exchange index BG40 shares of Mountain Paradise Invest REIT-Sofia are included, while in the composition of BG TR30 shares of Albena Invest Holding AD-Region are included
Source: money.bg (20.12.2012)