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BTC
Privatisation of 34.8% of BTC through a public offering on the Bulgarian Stock Exchange
In June 2004, the Bulgarian government sold a majority stake of 65% in BTC to the U.S. private investment fund Advent International for 280 million euro plus a 50 million euro capital increase. The remaining 35% stake was later sold on the Bulgarian stock exchange with Bulbrokers being manager of the IPO.
Transaction Overwiew
Privatization of 34.8% of BTC shares on the stock exchange completed in January 2005 as an assignment by the Privatization Agency.
BTC shares were sold for compensatory receipts; papers with a par of 595.1 million BGN were used.
With a mandate by the Privatization Agency, Bulbrokers, together with the United Bulgarian Bank and the National Bank of Greece, prepared legal and financial due diligence of BTC, a share offering strategy, marketing activities and investor road shows, which led to the successful placement of the shares on the stock exchange.
All the shares were placed in only four days, as 99.5% of the shares were sold on the first day of the offering, following the strong domestic and foreign interest.
This successful transaction once again proved the advantages of privatizations via the stock exchange and lead to an unprecedented market rally.
Key Figures
Shares sold: 2 869 251
Price in compensatory instruments: 595 059 000 (nominal value)
Transaction Highlights
- the biggest privatization deal through the Bulgarian stock exchange;
- the deal led to record high prices of compensatory instruments, which traded above par value in the days before the BTC auction;
- the deal was made in full transparency, which was beneficial for all market participants. |
Bulgartabak Holding
Privatisation of 12.8% of Bulgartabak Holding through a public offering on the Bulgarian Stock Exchange
Bulgartabak Holding is the former state tobacco monopoly. The company was among the leading tobacco companies in Central and Eastern Europe. The group included firms for tobacco processing, cigarette making, packaging and R&D. Currently, Bulgartabak Holding is being sold piece by piece.
Transaction Overwiew
12.8% of Bulgartabak were sold in the beginning of June 2003 for compensatory instruments; papers worth 79.3 million BGN in par value were used.
Mandated by the Privatisation Agency, Bulbrokers, together with the United Bulgarian Bank and the National Bank of Greece prepared legal and financial due diligence of BTC, a share offering strategy, marketing activities and investor road shows, which led to the successful placement of the shares on the stock exchange.
Bulgartabak shares were placed within four weeks among strong interest from both local and foreign investors.
Key Figures
Shares sold: 945 803
Price in compensatory instruments: 79 259 000 (nominal value)
Transaction Highlights
- the first successful privatization in the tobacco sector;
- the deal which brought back the confidence in the Bulgarian capital market and strengthened the interest in high-quality public companies;
- the deal proved the advantages of the privatization through the stock exchange. |
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DZI
Privatisation of 20% of DZI through a public offering on the Bulgarian Stock Exchange
achieved price: compensatory instruments with a par of BGN 46.1 million
Bulbrokers prepared legal and financial due diligence of BTC, a share offering strategy, marketing activities and investor road shows, which led to the successful placement of the shares on the stock exchange. |
Oil and Gas Exploration and Production
Production
Privatisation of 49% of Oil and Gas Exploration and Production through a public offering on the Bulgarian Stock Exchange
achieved price: compensatory instruments with a par of BGN 31.3 mln.
Bulbrokers prepared legal and financial due diligence of BTC, a share offering strategy, marketing activities and investor road shows, which led to the successful placement of the shares on the stock exchange.
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