Bulgaria - sale of Bulgartabac coming - selection of a consultant....

February 2, 2010 -
We reported back on December 7, 2090 that Bulgaria's Economy and Energy Minister, Traicho Traikov, that the State owned “Bulgartabac Holding” will be privatized in 2010. (Bulgaria - Bulgartabac Holding” will be privatized in 2010... Traikov further announced the conditions for the competition to select a consultant for the cigarette-maker's sale are ready and the competition itself will be announced in a matter of days. In August 2009 - we reported:Bulgaria - new government to speed-up Bulgartabac sale.. Map of Bulgaria..

Now as of February 3rd, four companies have submitted bids to advise the sell-off of Bulgaria's state-run tobacco producer Bulgartabac Holding, the privatization agency announced on Tuesday. Citigroup Global Markets Limited, tie-in between KBC Securities and Tokushev & Co, Raiffeisen investments- Kamburov and Renaissance Securities have submitted documents before the deadline expired on Monday.

Six years ago the Bulgarian Privatization Agency picked Morgan Stanley to advise the sell-off of the nation’s state-run tobacco producer. Aside of Morgan Stanley, the 2004 competition drew SG Corporate Finance Advisory, JP Morgan, Credit Suisse First Boston and UBS.

This time however the holding company owns only two instead of nine factories and is worth around BGN 80 million, according to the Ministry of Economy.

The application forms for the applicants for consultant cost BGN 2 000, and could be purchased within 35 days after the publication of the tender decision in the State Gazette. The deposit for participation in the tender was set at BGN 5 000, and had to be transferred to the Privatization Agency account.

The eligible candidates should be international investment banks which are in the top 20 of the League Tables of Financial Advisers in 2007-2009 published by Merger Market or Thomson Reuters. The candidates must be a leading a consultant of at least one privatization deal of a tobacco company in the last three years, and to have experience with privatization deals.

In addition, they should be familiar with Bulgarian law, should have a team of proper legal and economics specialists, should not be in a legal dispute with the Bulgarian state, and should not be in liquidation.

Reference: 4 Bids for Bulgaria's Cigarette Monopoly Sell-off Consultant, Novinite.com (Sofia News Agency), 2/2/2010.

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