Only Bidder Offers Minimum Price for Bulgarian Cigarette Maker Bulgartabac < br /> Currently, Bulgaria former cigarette monopoly Bulgartabac in Bulgaria with 34% market share.
At present, Bulgaria former cigarette monopoly Bulgartabac has a market share of 34% in the country.
It also pledged to have this first year of cigarette manufacturers, the company invested 2 million in Bulgartabac out of Bulgaria Vladimir, in the second year invested 500 million leva.
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Tobacco reports compiled according to Novinite buy Bulgarian state-owned cigarette maker Bulgartabac Holding Company BT the only candidate Austrian investment company, has provided € 100.1 million of the tender price. BT Investment Company from Russia second-largest bank VTB all.
If the adviser Citigroup Committee approved the sale and privatization, it will be released this transaction within a week, and then to obtain the approval of the board of supervisors Bulgartabac.
British American Tobacco and Austria in the CB family office services company in early August after the withdrawal of sales, this Russian only bidder – which is only reached the final stage of the privatization of the company, the company commitment to its tender price, in the first five years after purchase, it will purchase a minimum capacity of 5,000 tons of Bulgarian tobacco. This is about the number of Bulgarian tobacco production in 2010 to 15%.
BT investment company bid now by the Privatization Commission and privatization transaction advisor – Citigroup review. Bulgarian authorities vowed, if the bid does not meet the set requirements, not to carry out the transaction.
It has also promised to invest in Bulgartabac BGN 2 M in the first year of ownership of the cigarette-maker and BGN 5 M in the second year.
The Russian-owned bidder – which was the only company that reached the final stage of the privatization procedure after British American Tobacco and Austria-based CB Family Office Service dumped the sale earlier in August – has also pledged in its offer that it will be buying a minimum amount of 5000 metric tons of Bulgarian-produced tobacco in the first five years after the sale. The amount in question is about 15% of Bulgaria 2010 tobacco production.
In the event that the consultant Citigroup and the privatization commission approve the sale, the deal is to be given a green light withing a week, and is then subject to approval from Bulgartabac supervisory board.
The only candidate to buy Bulgaria state-owned cigarette producer Bulgartabac Holding, the Austria-registered firm BT Invest owned by Russia second-biggest bank VTB , has offered a price of EUR 100.1 M.
The consultant for the Bulgartabac sale, Citigroup Global Markets Ltd, was picked by the Bulgarian government in February 2010.

VTB-owned BT Invest offer of EUR 100.1 M for the purchase of 5 881 380 shares, which are 79.83% of Bulgartabac capital, is EUR 100 000 higher than the minimum required price of EUR 100 M set by the Bulgarian government.
Bulgaria governments have been toying with Bulgartabac privatization for the past 13 years; a procedure was first started in 1998 by the Kostov Cabinet. A privatization strategy for the holding was approved by Parliament in 2002 but what followed were two unsuccessful attempts to complete its sale to Tobacco Capital Partners and British American Tobacco.
on Monday (August 29) afternoon, after the privatization of Bulgaria privatization and control mechanism in the open sale of Bulgartabac deadline only a binding offer.
Aug 29, 2011
Novinite
BT Invest offers is now set to be reviewed by the privatization commission and the consultant on the deal – Citigroup. Bulgaria authorities have vowed that if the offer does not meet the set requirements, the deal will not go through.
The holding currently owns the two larger and more consolidated factories in Sofia and Blagoevgrad and a processing factory in Yasen near Pleven, as well as a number of commercial brands.