BGN 149 999 999 is the price at which consortium that includes Veliko Turnovo-based company Road Construction-Veliko Tarnovo, is ready to build the bypass of Sofia, which will be directly connected with highway Hemus. The section is 16 kilometers long. The price offered by the company is the lowest, as compared to propositions of the other participants. The consortium is composed of Hydrostroy Varna, Patengineeringstroy T SPJSC Targoviste, Patstroy SPLTD Burgas and Vodstroj 98 JSC. Road Construction-Veliko Tarnovo is the largest road construction company in the region. At present the company is burdened by Veliko Turnovo municipality to patch all holes in the streets of the city. The company has started in parallel a complete re-asphalting of several local streets. The company has a single asphalt base in the region that is located between villages of Hotnitsa and Rusalia.
Source: Borba - Veliko Tarnovo (15.03.2013)

Bulgaria has shortlisted two bids in the tender for the reconstruction the central railway station in Sofia, Bulgaria’s state-run National Railway Infrastructure Company (NRIC) said. The lower bid of 55.96 million levs was filed by tie-up GBS-Central Railway Station, led by construction company Glavbolgarstroy, NRIC said in a statement on its website on Thursday. The second bid, which amounts to 63.5 million levs, was submitted by consortium Balkanstroy Reming. The bids were given net of Value Added Tax (VAT). GBS-Central Railway Station has received 39.01 points for its technical offer while Balkanstroy Reming obtained 40 points. The reconstruction works will be financed under the EU-funded operational programme Transport.
Source: Capital (18.03.2013)

A total of 596,466 shares, equivalent to 9.94% of the share capital of Bulgaria's Corporate Commercial Bank, traded for some 54.1 million levs on the Sofia bourse on Friday, stock exchange data showed. The shares of Corporate Commercial Bank (Corpbank) changed hands in 21 transactions at an average price of 90.691 levs apiece, data from the Bulgarian Stock Exchange (BSE) indicated. The parties to the deals were not disclosed. Corpbank was up 2.27% at 90 levs by 1436 GMT on the BSE on Friday. Corpbank was the sixth largest bank by assets in Bulgaria at the end of January, according to central bank data. Twenty-four locally-registered banks and the branches of seven foreign lenders operate in the country.
Source: Capital (25.03.2013)

Two candidates appealed the auction for repair of Central Railway Station Sofia Two candidates vying for the repair of the Central Railway Station in Sofia appealed the choice of contractor. They are alliance Central Station Sofia 2012, which includes Stanilov, Trace Group Hold and GP Group and consortium Strabag - Sofia Railway Station, in which besides the Austrian company involves architectural studio Architectonics. The competition was organized by the owner of the station National Railway Infrastructure Company. The project is funded by EUR 20 million under Operational Programme Transport. The winner will have to modernize the building, pedestrian underpass, to set new ramp coverings and flooring, to build outdoor and underground parking and to increase the energy efficiency of the building within 26 months (after design). The competition was won by an alliance between Glavbolgarstroy, Vodstroy-98 and Industrial Construction Holding with an offer of BGN 56 million, without VAT.
Source: Capital (10.04.2013)

Moody's dropped the perspective of KTB to negative The risk, that the rapid credit expansion generates, modest capital buffers compared to those of competitors, and declining profitability. These are the reasons that have prompted international agency Moody's to drop the outlook of Corporate Commercial Bank to negative and lowered its assessment of financial stability. The overall rating was kept at Ba3, but the agency warned that it might suffer if the quality of its assets, its level of capitalization and profitability weakened compared to the current ones. Validating the rating, Moody's considers the growing importance of the bank as the fifth largest credit institution in Bulgaria and the consequent likelihood of support as systemically important bank.
Source: Capital (18.04.2013)

Bulgarian Vice Prime minister Ekaterina Zaharieva on a visit to Qatar The draft gear road Ruse - Svilengrad, investment opportunities in tourism projects, social and sports infrastructure will present the Vice Prime Minister Ekaterina Zaharieva on her two-day visit to Qatar this week. The program includes meetings with ministers, views about the government, and the signing of a memorandum of cooperation with the state investment company "Qatar Holding". In parallel, Bulgaria will participate with a stand at a trade show in the Eighth World Congress of commerce and industry, where they will be presented investment opportunities in construction and tourism. Together with Zaharieva part of the delegation will be the Deputy Minister of Economy Violeta Lorer.
Source: Capital (22.04.2013)

Corporate Commercial Bank (CCB) successfully raised its capital by collecting slightly over BGN 86 million on the stock exchange, the bank announced, cited by Capital Daily. The bank achieved its initial target at 91% - the bank projected to collect a total of BGN 94 million. The issuing price was BGN 156.47 per stock, considerably over the market price of BGN 87 per stock (on 22 May). The second largest shareholder at CCB following Bromak (controlled by banker Tsvetan Vasilev) - the State General Reserve Fund of Oman (with 33%) did not take part in the capital raise and now holds a lower stake at CCB. CCB had to raise its capital as it was close to the 8% minimum Tier 1 capital requirement. Last week the interim government approved new regulations on the management of state-owned companies’ funds. All ministries published data on their companies, according to which from a total of 40 companies, 19 keep all or part of their available funds at CCB. During the government of the triple coalition and its successor – the “Borisov” Cabinet, Tsvetan Vasilev expanded his business and acquired assets in many key sectors – telecommunications, media, transport, manufacture. The media controlled by him have always favoured the ones in power.
Source: Capital (27.05.2013)

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)

United Capital PLC in talks to buy majority stake in Bulgarian pension insurer Doverie from VIG United Capital PLC is in talks to buy a majority stake in Bulgarian pension insurer Doverie from the Vienna Insurance Group (VIG) for over 150 million euro ($192 million), a source close to the deal said. The source, speaking on condition of anonymity, said United Capital PLC has been given a preferred buyer status. VIG holds a stake of 92.48% in Doverie, according to its 2012 annual report. In late May news agency APA quoted VIG’s CEO Peter Hagen as saying the group is ready to immediately dispose of its stake in the Bulgarian pension insurance fund if a buyer is found. Doverie is performing well but is not part of VIG's core business, Hagen said then, as quoted by APA. A deal would have to be cleared by Bulgaria’s financial and competition regulators and the buyer would have to prove it could fund the purchase from own, not borrowed, capital. Little is known about United Capital PLC. Records of Companies House, the UK’s registrar of companies, show an entity incorporated in England and Wales with a registered office in Grays, Essex. According to an annual return form submitted to Companies House on May 21, 2013, the firm has two major shareholders - Regent Capital JSC and Asia Trade Management Ltd. The document also lists a number of small shareholders, including Claton Group SA, Nord Investment Inc, Regent Pacific Foundation and Guenter Rohr. Earlier today, a leading confederation of Bulgarian labour unions – without naming United Capital PLC – voiced concerns about the lack of transparency regarding who is going to buy Doverie and insisted on meeting the prime minister, regulators and the National Security Agency (DANS) to discuss the matter. The unions also called for an extraordinary shareholder meeting to be scheduled.
Source: Capital (11.07.2013)

State construction company Montagi for which several moths ago unsuccessful privatization procedure was attempted, has accumulated significant debts towards its employees and the National revenues agency. In order to cover them the company has announced its property for sale. A hospice of the company, located in the neighbourhood of Drujba is announced for sale with an initial price of BGN 1.417 million. The money is to cover retarded salaries, taxes and social insurance. Debts for the National revenues agency are to the amount of nearly BGN 1.853 million, as they consist of delayed taxes, insurance, including that for health from 2011, 2012, while certain obligations are being accumulated since 2005. Delayed salaries are assessed at about BGN 30 thousand. At present Montagi is part of State Consolidation Company, where it was apported with the aim of sale. The last third attempt for privatisation of the company ended unsuccessfully in the end of last year. The sole candidate back then was AT Engineering 2000 which didn’t hand out a binding offer. Initially the state tries to sell the construction company via the stock exchange with an initial price of BGN 70 million.
Source: Capital (18.07.2013)

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)

Sofia Central Railway Station to be renovated for BGN 56 million The GBS-Sofia Central Station consortium won the contract for renovating the Central Railway Station in Sofia for BGN 55.96 million excluding VAT. The agreement will be signed on Thursday in the presence of Transport Minister Daniel Papazov and National Railway Infrastructure Company chief engineer Milcho Lambrev. The consortium GBS-Sofia Central Station combines three companies: Glavbolgarstroy, Vodstroy 98 and Industrial Construction Holding. The consortium won the race of six candidates. From these, only the bids of two were accepted. Greek Terna, Austrian Strabag for example were disqualified from the tender for various reasons. After the end of the renovation in the fall of 2015, the Central Railway Station in Sofia will be completely renovated. It will have an energy independent, high-tech and energy-efficient air conditioning system. The landscape around the station will be entirely transformed and the platforms and escalators will be replaced. During the rehabilitation, the Central Railway Station in Sofia will continue to function normally. During the renovation on one level, the ticket offices, notice boards and facilities of the other level will be fully operational.
Source: Standart (22.08.2013)

Idleness worth BGN 20 million A year after the state sold the construction site and the frame of the unfinished building of Publishing and Printing Company Rodina for BGN 20 million, the Privatisation Agency has reason to demand for a forfeit at the same amount. The reason is that the building has not been demolished nor completed in accordance with the commitment of the buyer – a company controlled by Irena Krasteva, owner of New Bulgarian Media Group. According to the sales agreement this means the buyer is obliged to pay damages of up to BGN 20 million, secured with a bank guarantee. Corporate Commercial Bank (CCB) financed the deal and issued the guarantee. Years ago the owner of Publishing and Printing Company Rodina - United Bulgarian Newspapers – privatised another site measuring 41,000 m2, adjoining the 15,000-m2 site on Tsarigradsko Shose Blvd where the unfinished building is located. Both companies are a part of the circle of companies around CCB and its majority shareholder Tsvetan Vasilev.
Source: Capital (27.08.2013)

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)

Offshore companies invested BGN 8 billion in Bulgaria Just over EUR 8 billion is the total sum of all annual foreign investments in Bulgaria coming from offshore areas in the world, estimates of Standart say, based on data of the Bulgarian National Bank (BNB). This represents nearly 21% of all foreign direct investments in Bulgaria for the years after the democratic changes, the BNB data informs. At the end of August 2013, the total amount of foreign investments in the country reached EUR 38.528 billion. However, in the future, investments from offshore companies to Bulgaria will be limited by the new Act on Economic and Financial Relationships with Companies Registered in Jurisdictions with Low Tax Regime and Their Actual Owners, already submitted to the Parliament. It will prohibit offshore companies to hold an interest in banks, insurance companies, gambling operators, televisions, radios, sports clubs and print media. Offshore companies will be also not be eligible for public procurement and concessions. Companies will have 6 months in which to comply with the new requirements. By law are excluded countries with preferential tax regime with which Bulgaria has an agreement to avoid double taxation. Above the EUR 8 billion from the offshore countries, the need to introduce such regulation seems even more compelling, given the foreign investments coming from countries that have partial offshore status. Examples here are the Netherlands (EUR 7.1 billion), Austria (EUR 5.6 billion), Hungary (EUR 1,066 billion), Ireland (EUR 659.2 billion). If we look at things from this angle, the offshore investments in the country reach the startling amount of EUR 22.8 billion or 60% of all direct investments in the country.
Source: Standart (17.10.2013)

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)

Blagoevgrad BT offers BGN 1.5 million more for plant in Banja Luka After in September Blagoevgrad BT bought 70.6% of Bosnian Factory Duvanli - Banja Luka, the Bulgarian company now is to make a tender offering for acquisition of the rest 29.4% of the company’s shares. The Bulgarian investor is ready to pay BGN 1.5 million for the package, which is comparable to the price of BGN 5.8 million for which the majority share is to be transferred. By acquiring the company’s business, Blagoevgrad BT got duty free access to tobacco markets of the Western Balkans. Production capacities of the factory are located to an area of 23 thousand square meters. The Bosnian factory employs 375 people, while annual production is assessed to 700 tons. By 17th of September the management of the factory is taken by a new team of Bulgarian managers. Ventsislav Cholakov, Tsvetan Tsvetkov and Miglena Hristova are appointed ate the Board with a four-year term. Blagoevgrad BT is delisted from BSE. 82.4% of its shares are owned by Bulgartabac holding.
Source: Capital (24.10.2013)

Forbes Bulgaria: Banker Tsvetan Vassilev is the most influential Bulgarian The most influential person in Bulgaria for 2013 is the banker Tsvetan Vassilev, owner of Corporate Commercial Bank. According to the TOP 50 ranking of Forbes Bulgaria. Following him, MRF honorary chairman of Ahmed Dogan is chosen as silver medalist, while the third place was taken by Varna businessmen Ivo Kamenov. BSP and PES leader Sergey Stanishev came in as sixth, followed by MP Delian Peevski. The owners of First Investment Bank Ivaylo Mutafchiev Tzeko Minev ended in the eighth and ninth place. Tenth is the boss of Lukoil Bulgaria Valentin Zlatev. Former prime minister and GERB leader Boyko Borisov, who topped last year's list, was chosen as 11th in 2013. Some of the most influential people in the top ten of 2012 are now outside the top 50. For example, former Finance Minister and Deputy Prime Minister Simeon Djankov, who took the fourth position last year, has now fallen out of the rankings. This year's Forbes Bulgaria ranking has only conceded two representatives of the NGO sector. Only 14% in the ranking are women - the lady with the most forward position is the mayor of the capital Yordanka Fandakova, who occupies the 29th place.
Source: Standart (30.10.2013)