Holding Varna Acquires 2 Hotels of Bankrupt Tour Operator The controversial Holding Varna, which is connected with Varna-based security group TIM, has acquired two hotels formerly owned by Alma Tour, a Bulgarian tour operator that went bankrupt in 2011. Holding Varna, which is part of Chimimport, a major Bulgarian business operator, has thus became the owner of Hotel Atlas in the Bulgarian Black Sea resort Golden Sands and Hotel Astera Bansko (formerly known as Templar) in the ski resort of Bansko, Dnevnik reported citing an announcement of the Bulgarian Stock Exchange. Holding Varna has made the acquisitions through its subsidiaries MC Food Varna and Canisto Matti, which paid off Alma Tours debts to UniCredit Bulbank, Central Cooperative Bank, and the Bulgaria Air airline, the last two also known to be connected with TIM. Alma Tour was declared bankrupt in 2011 at the request of UniCredit Bulbank and Central Cooperative Bank because of failure to pay back its debts, amidst a diplomatic crisis as Bulgaria Air refused to carry out Alma Tour's charter flights and hundreds of Russian and Finnish tourists got stranded at Bulgaria's Black Sea airports. Secret US diplomatic cables from the US Embassy in Sofia leaked on WikiLeaks have mentioned TIM as one of the major organized crime groups in Bulgaria. None of TIM's activities has been investigated or prosecuted to date. Holding Varna has been notorious with its plans for resort construction in Varna's Maritime Garden, one of the largest parks in Bulgaria considered a national tourism attraction, which spurred civic protests in Varna, Bulgaria's largest port and Black Sea city.
Source: Capital (02.01.2013)

Bulgaria’s Holding Varna acquired Alma Tour’s hotels Holding Varna Plc, part of the Chimimport Group, officially acquired two hotels of bankrupt tour operator Alma Tour. In an announcement to BSE-Sofia on Friday the holding said it is the new owner of the Atlas Hotel in the Golden Sands summer resort and the Astera Bansko Hotel (the new name of the Templar Hotel) in the ski resort of Bansko. The two hotels were acquired by subsidiary companies of the holding - MS Food Varna and Kanisto-Mati, which covered the outstanding debts of Alma Tour to UniCredit Bulbank, Central Cooperative Bank (CCB) and Bulgaria Air. By request of the two banks, a year earlier Alma Tour was declared insolvent due to non-performing loans. The sale of the Templar Hotel was defined by private enforcement agents as the top deal of 2012 due to the record high price offered by its creditors – BGN 22 million. The buyers were two companies from the Chimimport Group – Finance Consulting and Chimimport Invest that undertook debts for BGN 13.9 million from the initial creditors of the travel company – UniCredit Bulbank and CCB. The price paid was slightly less than BGN 18 million, probably due to the penalties accumulated. The Atlas Hotel was acquired following a similar scheme. The situation around it was slightly more complicated due to Alma Tour’s attempt to transfer the hotel to Alpis Engineering and Hidrostroy Invest. However, the real estate was sold at a public tender in September, 2012, and is now officially owned by the Chimiport Group. The price paid on the hotel was BGN 20.3 million. According to the announcement to BSE-Sofia, with the new acquisition Holding Varna is planning to expand its investment portfolio in the field of tourism.
Source: Standart (03.01.2013)

In the end of 2012 Central cooperative bank transferred slightly over 7% of its capital to Investment Company Galata. After the transfer the bank’s share decreases to 15.05%. Buyer of the package is Holding Varna AD, which owes 15.63% of the company.
Source: profit.bg (04.01.2013)

Hotel complex Cosmopolitan in Rousse announced for sale Great part of the iconic hotel complex in Rousse "Cosmopolitan" is announced for sale. Public tender is executed by a private bailiff and comprises part of yard, shops, bars, snack bar, kitchen, and four floors of the complex. The initial price is BGN 2,419,133 VAT. The property has established 10 mortgages in favor of UBB for EUR 8,500,000 and BGN 2,845,206. Tender procedure starts on Monday and runs through Feb. 14 in the Rousse District Court.
Source: Darik Radio (14.01.2013)

Bulgarian fuel retailer Petrol [BUL:5PET] said on Wednesday it has repurchased Eurobonds with a total nominal value of 68.4 million euro ($91.2 million). Bonds with a combined par value of 55.2 million euro were repurchased on December 22, while the rest were bought back by the company on January 9, Petrol said in a statement filed with the Sofia bourse. The 100 million euro Eurobond was issued on the international capital markets with an 8.38% coupon in 2006 and matures in January 2017.
Source: Capital (17.01.2013)

The Commission for Protection of Competition (CPC) allowed UBB to acquire Postbank, the Capital Daily writes. The deal is a result from the merger of the two banks’ parent institutions in Greece – the National Bank of Greece (NBG) and Eurobank EFG. The anti-monopoly commission announced that following an assessment and analysis of the respective market and the financial services offered by the two crediting institutions - banking, insurance, leasing, factoring, assets management etc., “the planned concentration will not lead to a strengthening of their dominating position on the market that would considerably limit or hamper efficient competition on the markets analysed.” In order to make its assessment the CPC requested standpoints and information from the Bulgarian National Bank (BNB), the Financial Supervision Commission (FSC), the Association of Banks in Bulgaria (ABB), the Bulgarian Association for Leasing (BAL) and the two banks’ main competitors on the market – UniCredit Bulbank, DSK Bank, Raiffeisenbank, Fibank, SG Expressbank, Corporate Commercial Bank, Piraeus Bank, MKB Unionbank, Allianz Bank, Central Cooperative Bank, as well as some of the two merging financial institutions’ main clients. The CPC established that the merged financial institutions will not have a market share exceeding 25% in any of the segments on the banking market. The merged financial institutions will be second on the market in terms of assets with a 15.3% share in retail banking, 23.2% in housing and consumer loans, 14.1% in corporate crediting and 16.6% in household and corporate deposits.
Source: Capital (28.01.2013)

The resignation of the government affected negatively the stock market. The main index SOFIX fell 2.69% yesterday to 382.7 points. The greatest decline was of Chimimport’s shares (14% to BGN 1.22), CCB (by 11% to BGN 0.782) of Bulgartabac (by 6.49% to BGN 93.5). Around noon a strong decrease of about 9% was recorded for shares of First Investment Bank. Stara Planina Hold rose (by 2.81% to BGN 2.699), M+S Hydraulic (by 2.16% to BGN 7), Kaolin (by 0.56% to BGN 3.62) and Eurohold Bulgaria (by 0.33% to BGN 0.925). The decline in the share prices of these companies is not random and can be explained by the conservative attitude of investors towards them because of the lack of clarity about possible scenarios following the resignation of the government, experts believe. Stock Exchange always overexposed similar political news and the effect on the economy is not commensurate with the effect on stock trading.
Source: Sega (21.02.2013)

Despite the shareholders drama at Petrol Holding, managerial control over it and its main asset - the fuel distributor Petrol, still remains unchanged in the beginning of the year. At a general meeting on February 20th of Petrol the shareholders did not change the composition of the supervisory board and so it still includes representatives of the two warring camps of the principal owners of the group - Mitko Sabev and Denis Ershov. According to the agenda of the meeting the shareholders had to release the whole current supervisory board, including Denis Ershov, and to vote in their place Mitko Sabev, Sergei Baturina and lawyer Tihomir Trendafilov. Before that they had to cut the Supervisory Board from five to three members. The main shareholder with voting right Petrol Holding was voted "abstain" and thus the change with the size of the board was not approved and made the personal changes pointless.
Source: Capital (25.02.2013)

Only Fibank wants MKB Unionbank First Investment Bank (Fibank) made an offer to buy MKB Unionbank, Capital Daily reports. The other prospective buyer is Hungarian OTP Bank, owner of DSK Bank in Bulgaria. However, it did not submit an offer. Fibank probably has offered to buy Fibank at a price of about half the equity of MKB Unionbank. In end-2012 the equity of the bank stood at BGN 207.5 million. Therefore, the proposed purchase price is about BGN 100 million. MKB Bank in Hungary did not answer questions of Capital Daily related to the purchase. Fibank did not comment either. OTP Bank did not comment the deal either. At this stage it is not certain whether there will be negotiations and a deal, because since the very beginning of MKB Unionbank’s sale in 2012, its end owner Bayern LB (which owns Hungarian MKB Bank) explained it would not sell the bank at any cost. The other two prospective buyers – Central Cooperative Bank and Union Group – have not submitted bids either. Experts say that the purchase price of the bank amounted to about BGN 100 million. However, it had to include also the short-term resource of MKB Unionbank worth BGN 345 million. In case of a sale, the parent bank will receive this amount, while the buyer will have to provide liquidity buffers to replace the withdrawn ones. The sale of 49.99% of the capital of the Bulgarian-American Credit Bank (BACB) in 2011 resembles this one. BACB’s owner Tsvetelina Borislavova paid EUR 100,000 and provided a credit line of EUR 35 million. Thus, BACB repaid a bond issue and increased its capital by EUR 50 million. At present, Fibank is traded at about 40% of the value of its equity on the Bulgarian Stock Exchange. Fibank, whose main shareholders are Tseko Minev and Ivaylo Mutafchiev, is Bulgaria’s third bank in terms of assets. If it acquires MKB Unionbank it may replace DSK Bank and take the second place.
Source: Capital (18.03.2013)

The Corporate Commercial Bank, the Central Cooperative Bank, Investbank, UBB, UniCredit Bulbank, Raiffeisenbank are the financial institutions managing funds of state companies, 24 Chasa daily reveals. Standart daily specifies that the number of these banks is 11 and adds the names of Postbank, First Investment Bank, D Commercial Bank, CIBank and Bulgarian-American Credit Bank. Some 41 of state companies have deposited too much of their money into only one bank, research by Bulgarian ministries revealed. Some 59.44% of money of NEC, 96% of money of Bulgartransgaz, 88.20% of BEH and 90.85% of deposits of Bulgargaz are managed by the Corporate Commercial Bank. Five companies related to the Ministry of Economy have large deposits in the Central Cooperative Bank. 42.54% of the money of Kozloduy NPP is deposited in Investbank. Money of BDZ Passenger Services is managed by UBB and Eurobank, money of BDZ Freight Railway Services is managed by the Corporate Commercial Bank, 61% of the money of Bulgarian Posts is managed by UniCredit Bulbank, while 91.95% of the money of Bulgarian Port Infrastructure Company is managed by the Central Corporate Bank.
Source: Standart (23.05.2013)

CCB to issue preferred stocks Central Cooperative Bank (CCB) will issue preferred stocks and hybrid securities in order to raise its capital. The maximum volumes are of up to BGN 90 million for the preferred and common stocks and up to EUR 45 million for the hybrid securities. This transpires from the invitation for a general meeting of the bank’s shareholders on June 28, 2013. Shareholders will vote on a proposal to entitle the bank’s Management Board to raise the bank’s capital by issuing preferred or common stocks or hybrid securities for a period of five years. The growth of the bank’s assets seems like a reasonable explanation for the raise of CCB’s capital. They grew by 6.7% to BGN 3.4 billion in a year. Compared to the growth demonstrated by other banks, it can be defined as “unhealthy.” By end-March the bank's capital was BGN 349.3 million, increasing by 3.8% in a year, the Capital Daily reports.
Source: Capital (28.05.2013)

Bulgaria on air offers BGN 12.5 for the rest of Investor.bg’s shares Bulgaria on air made a tender proposition for the rest of the shares in Investor.bg at a price of BGN 12.50 per share. Related to Chimimport’s owners media company Bulgaria on air, which owes directly 49% of the capital (750 thousand shares) deposited tender offer back on the 22nd of April in the Financial Supervision Commission. Papers were returned due to remarks on calculation of the price. Last week FSC said it won’t impose final ban, which actually means that it authorizes with silent agreement. Broker in the tender is Central cooperative bank, as the term for acceptance is set in 28 days after publication. On the 22nd of April media company Bulgaria on air acquired 88.5% of Investor.bg’s shares in return of BGN 16 million.
Source: Capital (18.06.2013)

European Commission Opens Proceedings against Bulgarian Energy Holding The European Commission announced it has opened formal proceedings against Bulgarian Energy Holding and its subsidiaries Bulgargaz and Bulgartransgaz for an alleged hindering of competition. The European Commission will investigate whether Bulgarian Energy Holding (BEH), its gas supply subsidiary Bulgargaz and its gas infrastructure subsidiary Bulgartransgaz might be hindering competitors from accessing key gas infrastructures in Bulgaria, in breach of EU antitrust rules. An opening of proceedings does not prejudge the outcome of the investigation. The Commission has concerns that the Bulgarian energy incumbent BEH and its subsidiaries may be abusing their dominant market position on the natural gas markets in Bulgaria, in breach of Article 102 of the Treaty on the Functioning of the European Union (TFEU). In particular, the Commission has concerns that these companies may be preventing potential competitors from accessing the Bulgarian gas transmission network and the gas storage facility by explicitly or tacitly refusing or delaying access to third parties. In addition, these companies may be preventing competitors from accessing the main gas import pipeline by reserving capacity that is consistently not used, without releasing it on the market. “Without access to this key infrastructure, it is impossible for any companies to compete with Bulgargaz on the Bulgarian gas supply markets,” the commission said in an official statement. It points out that such practices, if established, restrict competition and may lead to less choice and worse gas supply conditions, ultimately to the harm of EU consumers.
Source: Dnevnik (08.07.2013)

The cabinet hides data on public deposits again Although PM Plamen Oresharski pledged that ministries should observe the rules for selection of financial institutions, which will hold state company funds, most ministries did not publish data on the concentration of their companies’ money, Capital Daily reports. The Ministry of Agriculture was the only ministry that published a report about its activities on its website. After Capital Daily questioned the ministries about their activities, the Ministries of Economy and Transport also published their reports. These two ministries hold most of their funds in the Corporate Commercial Bank, which is controlled by Tsvetan Vasilev. Data published in May confirmed unofficial information that the bulk of state company funds were concentrated in just a few banks. The first one was the Corporate Commercial Bank, where 18 public companies had deposited their money, including the Bulgarian Energy Holding (BEH). Second was the Central Cooperative Bank, which was the favourite bank of 15 public company managers. However, according to the data published now, none of the public companies related to the Ministry of Finance exceeds the 25% barrier. Three months ago, the money of the Bulgarian Stock Exchange was held mainly by Postbank and the Corporate Commercial Bank, while now it is deposited in six banks. However, companies related to the Ministry of Agriculture and the Ministry of Regional Development are still holding their money mainly in D Commerce Bank and the Central Cooperative Bank respectively.
Source: Capital (01.08.2013)

Bulgarian banking network is shrinking In line with the European trend, Bulgarian banks have reduced their branches and staff since the beginning of the crisis. For the past four years the network of the biggest and most active banks in this country has shrunk 8.24% and staff has fallen 4.41%, a survey shows. The calculations are based on public data of half of the 24 registered institutions. The overall decrease in the number of branches and staff is a logical consequence of banks' shrunken business, bankers say. That is due to the slow-down in business activity and limited household consumption. Another factor in the process is the introduction of alternative banking forms, i.e. online and mobile banking. There are some exceptions to the rule, though. Four banks have expanded their branch network: Corporate Commercial Bank (43.59%), Societe Generale Expresbank (4.93%), DSK Bank (0.26%) and Central Cooperative Bank (0.38%). The number of employees has grown in First Investment Bank (6.32%), Societe Generale Expressbank (10.68%), Corporate Commercial Bank (42.09%) and Central Cooperative Bank (29.16%).
Source: Capital (20.08.2013)

CCB bought Pliska hotel Central Cooperative Bank / CCB / part of the holding Chimimport bought iconic metropolitan hotel - Pliska. Credit institution paid BGN 27 million for the site, which in recent years didn't accept guests. Income wore only the huge ads on the facade. CCB acquired the hotel from the company Business Center Izgrev, whose ultimate ownership is registered in the Bahamas Fritz International. Business Center Izgrev is highly indebted. Its obligations are assessed at a total of BGN 32 million. Solely for 2012 the company reported an annual loss to the amount of BGN 1.5 million. The tall 16-storey hotel was opened in 1969. During socialism its main function was to take passengers on Balkan Airlines having problems with flights. After BGA Balkan’s bankruptcy in 2006 Business Center Izgrev bought it at a tender from the air company’s trustees.Business Center Izgrev bought the hotel and the ex-administrative building for a total of BGN 18 million.
Source: Capital (30.09.2013)

Central Cooperative Bank (CCB) plans to issue bonds for EUR 36 million, the Financial Supervision Commission (FSC) informed. At its last meeting, the watchdog approved the prospectus for the public offering of debt securities that can be converted into shares. The bonds are not secured. The bank did not want to give more information on the public offering and explained that it would soon publish a prospectus in which everything will be detailed. Usually, placement of bonds is a way for banks to raise funds for lending. Interest on debt securities is lower than those on loans to businesses and households, and so the bank wins, while expanding its activities. According to CCB, the annual interest on the bonds will be 4.5% and their maturity will be in 2020.
Source: Capital (31.10.2013)

Bulgaria’s Central Cooperative Bank launches convertible bond issue Bulgaria’s Central Cooperative Bank (CCB) has offered for subscription 36,000 convertible bonds for a total of 36 million euros, the bank said on Tuesday. The bonds, which will mature in 2020, have a par value and an issue price of 1,000 euro apiece and an interest rate of 4.5%, the bank said in a filing with the Sofia stock exchange. Holders of 3,143.17 shares are entitled to subscribe to one new bond. New investors can buy subscription rights on Sofia stock exchange. The company will consider the bond issue successful if it sells at least 23,000 bonds for 23 million euro in total.
Source: Capital (06.11.2013)

Banks with Bulgarian capital getting bigger and more powerful Banks with Bulgarian owners have been growing bigger, moving up the scale in terms of assets, it transpires from BNB data for October 2013. Three lenders with Bulgarian ownership saw their assets rise in October - Corporate Commercial Bank jumped to the 4th place in the chart, Central Cooperative Bank ranks eighth and Investbank is thirteenth. They overtook UBB, Societe Generale Expressbank and Bulgarian Development Bank (BDB) respectively. Thus, two of Bulgaria’s largest banks in terms of assets are controlled by Bulgarians – Fibank (4th) and Corporate Commercial Bank (5th). UniCredit Bulbank leads the chart, followed by DSK Bank. According to BNB stats, the downturn in banking sector profits continued in October. The sector’s profit in late October totaled BGN 511.4 million, down 8.8% y/y. On monthly basis, however, its positive financial result increased by BGN 45 million
Source: Capital (02.12.2013)

Bulgaria’s Corpbank extends USD 15 mln loan to local Petrol Holding Bulgaria’s Corporate Commercial Bank (Corpbank) has extended a USD 15 million (EUR 11 million) credit to local fuel retailer Petrol Holding, local media reported on Wednesday. Corpbank provided the secured credit in July. In 2011, Petrol Holding obtained an USD 86 million loan from Corpbank and local Central Cooperative Bank. Russian businessman Kirsan Ilyumzhinov bought 52.5% of Petrol Holding in 2012. Speaking at a news conference last month, Ilyumzhinov said he has proposed to buy out the stake of the other shareholder, Mitko Sabev. A couple of days ago, some 52,137,428 shares, or 47.7%, of Petrol, a majority-owned unit of Petrol Holding, changed hands on the Sofia stock exchange at an average price of BGN 2.009. No information about the buyer is available.
Source: Capital (04.12.2013)

Bulgarian fuel retailer Petrol shares jump 13% on Sofia bourse The shares of Bulgarian fuel retailer Petrol jumped 12.90% to BGN 2.800 on the Bulgarian stock exchange by 1332 CET on Monday. The fuel retailer's shares rose on news that local company Alfa Capital bought a 47% stake in Petrol last week. The seller was private enforcement agent Marian Petkov, he added. On December 2, some 52,137,428 Petrol shares, equal to a 47.7% stake in the company, changed hands on the Bulgarian stock exchange at an average price of BGN 2.009. No information about the buyer was available until Monday, when the Central Depository announced the parties to the transactions. According to local news portal Dnevnik.bg, the buyer is affiliated to local Corporate Commercial Bank. The Central Depository's announcement put an end to the uncertainty surrounding the deal and the market reacted positively, the broker said. On Wednesday, acting on a claim by Petrol's majority shareholder, local Petrol Holding, that the transactions involved incorrect data, a Bulgarian district court requested from the Central Depository to not register them.
Source: Capital (10.12.2013)