Just two of the companies that purchased information memorandums on the privatization of 75 per cent of Sofia Film submitted an offer last Thursday.

They are United Cinema and Bulgarian Technologies, the Privatization Agency (PA) announced the same day.

The company will be sold through negotiations with potential buyers. The remaining 25 per cent of the company's shares will be offered for sale on the stock exchange. The PA wants to get at least 4.7 million leva and is seeking an investment commitment of at least five million leva.

Sofia Film is involved in film distribution and owns most of Sofia's cinemas - Evropa Palace, Moskva, Kultura, Serdika, Iztok, Vitosha, Modern Theatre, Urvich and Mir.

Negotiations with a selected strategic investor were cancelled last year by former PA executive director Zahari Zhelyazkov due to a lack of guarantees that a foreign investor would use Bulgarian film distribution companies and would show Bulgarian films.

One of the participants in last year's procedure was the Israeli company Globus Group, owned and operated by the world famous producer Yoram Globus. The company decided not to submit an offer this time around.

"We understand any country's fears about foreign investors and taking business away from the local companies," said Allan Greenblatt, spokesperson for Globus Group. "That's why there are guidelines for choosing foreign investors. For example, making sure that the investor is from the business. Making sure the intent is to keep the business going as a going concern and that the investor can in fact enhance the company and move it forward."

He added that their company certainly qualified in all of these areas and that their interests are to work together with the producers, distributors, exhibitors and other artists, such as actors, directors and technicians to help build and strengthen the industry.

According to Greenblatt, Globus Group chose not to submit an offer this time as the way the memorandum was structured did not seem practical and made no business sense for a strategic investor who is interested in maintaining, operating and upgrading the cinema chain. "The chain is constantly losing money every year, worse than the previous years. There is no guarantee for a clear chain of title as the sights are riddled with restitution problems, the restrictions on the price and payment methods were restructured from last year's memorandum and offering, making it very difficult for any investor to consider purchasing the cinema chain," he said.

"Bulgaria's cinemas are suffering from neglect and lack of financial resources. They need capital infusion and modernization, which is what we intend to bring," Greenblatt said.

He said that Globus Group would like to build multiplex theatres as well as investigate the opportunities of introducing entertainment centres. "By modernizing and upgrading the cinemas, building new modern multiplexes and developing entertainment centres you begin to treat the public with respect, then and only then will they begin once again to spend their hard earned money on leisure activities and go to places where they feel comfortable and enjoy."