Changes in BTC begin Some of the members of BTC’s Management Board have already been replaced. Among the new members is Zlatozar Surlekov, member of the Supervisory Board of Corporate Commercial Bank (CCB). In November CCB and VTB Capital finalised a deal for the acquisition of about 94% of BTC. They have so far not convened a general meeting of shareholders at which amendments to the company’s statutes and changes in its management should be voted. According to the current statutes, the Management Board is elected by the Supervisory Board. In order to exercise their voting right the new owners of the telecom must make a public tender proposal to the other shareholders, while it is still awaiting the approval of the Financial Supervision Commission.
Source: Capital (16.01.2013)

The new owners of the Bulgarian Telecommunications Company (BTC) – banker Tsvetan Vasilev, Supervisory Board Chairman of Corporate Commercial Bank (CCB), Russian VTB Capital and part of the telecom’s creditors, now own 99.72% of the company. The main minority shareholder that could have blocked the eventual future delisting of the company from the stock exchange – a fund of the Artio investment company, accepted their offer. It held 11.6 million shares or slightly over 4.6% of BTC’s capital it sold at a price of BGN 2.806 per share,
Source: Capital (01.03.2013)

Russian VTB Bank Buys 10% Stake from Bulgarian Corpbank VTB Capital, the investment business of VTB group, the second largest Russian bank has acquired 9.9% of the capital of Bulgarian lender Corporate Commercial Bank from Dewa International Limited. The sides have sealed contracts for put and call options for the shares acquired by VTB Capital, to be applied no later than three years after the deal. Corporate Commercial Bank, CCB, is the fifth largest bank in Bulgaria, listed on the Bulgarian Stock Exchange. Corpbank manages 48% of the monies parked by state-controlled enterprises and 95% of the deposits of the energy holding, which adds up to more than BGN 76 M. VTB Capital opened its office in Bulgaria in March 2012.
Source: Dnevnik (22.04.2013)

Owners of Bulgartabac holding are to cover significant part of the sum they paid for privatization of the company. This is to become through payment of dividend. On the annual general meeting, which took place on the 21st of May all that were present approved of the proposition the company’s reported profit to the amount of nearly BGN 70 million and part of the company’s reserves to be distributed between shareholders. This makes BGN 9.46 per share, which means that the majority owner BT invest will get a sum of BGN 55.65 million. The rest shares are owned by different natural and legal entities, among which is Corporate commercial bank. Officially Austian company BT invest bought the major share in the tobacco holding in 2011 for a sum of EUR 100.1 million, or BGN 200 million. The deal consisted of a secured partnership between owners of Vinprom Peshtera and the owner of Corporate commercial bank. After the privatization, several companies from the Bukgartabac - Blagoevgrad BT, Sofia BT and Pleven BT were removed from the stock exchange.
Source: Capital (23.05.2013)

Bulgartabac seeks an authorisation to purchase distribution companies with over 370 employees. The company submitted to the Commission for Protection a request for concentration with eight companies, owned by Carne-M. Both the buyer and the owner are associated with Tsvetan Vasilev, the majority owner of Corporate Commercial Bank, and Delyan Peevski, a member of the Movements for Rights and Freedom. Bulgartabac was sold to a specially formed subsidiary of VTB Capital, but the real owners not disclosed. After its privtisation the company acquired concessionaire of bus stopa in Plovdiv-Eliza 1999 and made a proposition to most big municipalities to get a concrete number of places for for kiosks at key locations. Bulgartabck trading, the holding’s commercial company acquired Press circulation, which has about 100 kiosks in Sofia.
Source: Capital (29.05.2013)

Double 5 stars There are over 360 hotels in Sofia, though the market is weak. Hotel market is exclusively domineered by Bulgarian owners, while foreigners are waiting or directly in the role of sellers. In the beginning of the year, consulting company Jones Lang LaSalle was burdened with the sale of Sofia-based hotel Hilton. Eight offers were handed out for Hilton. Contrary to expectations, though all offers were made by Bulgarian buyers. The sole foreign candidate was a Swiss fund. The reason for the sale of the hotel is bad financial condition of its owner Quinn Group. Irish group is in bankruptcy and is restructuring part of its business, while parting with the other one. The latter includes hotel assets. Sofia-based Hilton for example is pledged as collateral for a total credit of EUR 121 million from The Bank of New York Mellon to companies by the Irish group. The future buyer is offered to acquire either the property or the mother company. Hilton’s future owner will get the strongest5-star hotel at the Sofia market. The hotel has a leading position in overnight stays in its category. Besides it reported 13496 stays in the first three months of the year with its 245 rooms. For the last two years it has three times increased its occupation. Hilton is maintaining average prices for a five-star class, which is a guarantee for stable revenues. Strong brand, as well as the fact that it is among the few hotels in Sofia, built under standards of an international operators are among its advantages. If negotiations with the exclusive buyer are going according to the plan, it is possible the deal to be completed this autumn.
Source: Capital (21.06.2013)

BTC owner wants the state to forfeit its golden share The state might lose its golden share in the Bulgarian Telecommunications Company (BTC), while BTC’s owner might delist the company from the BSE – Sofia. These are some of the plans of the private owner – Viva Telecom Bulgaria, it transpired from an announcement of the company to the BSE. An extraordinary general meeting of Viva Telecom Bulgaria shareholders will take place on September 16. Viva Telecom Bulgaria holds 99.72% of BTC's capital. It is connected to VTB Capital and Corporate Commercial Bank of famous Bulgarian businessman Tsvetan Vasilev.
Source: Sega (20.08.2013)

Majority owner of Corporate commercial bank Tsvetan Vssilev and Russian company VTB will vote today at Bulgarian Telecommunications Company’s general meeting of shareholders on nullifying of the so called golden share of the state in the Telco. It guarantees that the state keeps its veto in case of major decisions. The agenda includes special rights of the preferred share of the State in the company to be withdrawn and to be transformed it into ordinary registered shares. The golden share made it possible for the state to block future changes in the name of the Telco, suspension or limitation of activity, issuance of new shares, and conversion of the company in any way. The next decision to be voted is connected with change of the name of the company-from BTC AD it is to transform into EAD. The third decision is connected with delisting of company from the registry of public companies.
Source: Dnevnik (16.09.2013)

Bulgartabac unit buys 70.6% of Bosnia's FDBL, triggers buyout A unit of Bulgarian tobacco group Bulgartabac Holding has acquired a 70.6% stake in Bosnian peer Fabrika Duvana Banja Luka, triggering a requirement to place a buyout bid for the remaining equity, the broker in charge of the transaction said on Wednesday. Blagoevgrad BT's acquisition of 4,984,980 Fabrika Duvana Banja Luka shares on September 17 has triggered an obligation to publish a buyout offer for the remaining 2,075,414 shares which the Bulgarian company has priced at 1.17 marka ($0.8/0.6 euro) apiece, Advantis Broker said in a filing to the Banja Luka Stock Exchange. The buyout bid will be published within the law-prescribed timeframe. Fabrika Duvana is based in Banja Luka in the Serb Republic, one of the two autonomous entities forming Bosnia and Herzegovina. The other one is the Muslim-Croat Federation.
Source: Capital (20.09.2013)

CCB acquired 5% of Bulgartabac Corporate Commercial Bank acquired the package of 4.99% of the capital of Bulgartabac, which was transferred through the stock exchange on Monday for BGN 36.9 million, the Bank of Tsvetan Vasilev announced. Subject of the transaction were 368,200 shares at BGN 100 per piece. A year ago, a similar share of the tobacco holding was acquired by Italian businessman Eduardo Mirolio - for a little over 5 % in several transactions he paid BGN 27 million. Seller of the package was another company of Tsvetan Vasilev - Bromak (through, which he owns CCB). After this transaction there is no other shareholder with such a large proportion (5%) except Mirolio and the majority owner. So far, Tsvetan Vasilev has so far officially denied connection with the former state holding company. Bulgartabac was privatized over two years ago by the then new company BT Invest, owned by Russia's VTB Capital.
Source: Capital (24.10.2013)

BTC preparing a “megaloan” The Bulgarian Telecommunications Company (BTC) will carry out a “road-show” in London this week, the company announced, as cited by Capital Daily. The BTC intends to take a “megaloan” from financial markets. Its management will decide on the potential issuance of EUR 400 million of euro-denominated bonds maturing in five years with their expected rating being Â1/ÂÂ-. The BTC will use the loan to refinance its existing debts. The BTC has specified the Irish Stock Exchange as its potential offering platform as the company has listed bonds for USD 150 million there. The global coordinators of the bonds emission will be Credit Suisse and VTB Capital, the intermediaries Barclays and Deutsche Bank, with co-manager Societe Generate. Since end-2012 the owner of BTC is a consortium between the majority shareholder of Corporate Commercial Bank (BTC) and the investment subsidiary of Russian VTB in London – VTB Capital.
Source: Capital (11.11.2013)

VTB Capital might close overseas subsidiaries Reduction of overseas subsidiaries of Russian state company VTB due to weak profitability was proposed by manager of VTB Capital international Atanas Bostandjiev. The bank’s investment subsidiary VTB Capital has several Bulgarian investments and is a partner of banker Tsvetan Vassilev in Bulgartaback holding and in BTC. Apart from this, VTB Capital is a stakeholder of 9% in Corporate commercial bank. Bostandziev proposed cutting 40% of all VTB subsidiaries. Customers are to be reduced by two third of their present number. The proposition is natural in terms of increasing expenditures that reach 95% of revenues’ volume. If the restructuring plan is implemented the bank will save USD 104 million expenditures a year. It will increase return on equity to 30% as well. VTB Capital starts operation in 2008. Setting up its structure is assessed to USD 500 million.
Source: Capital (18.12.2013)