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Wed, Jun 19 2013
Sale of Bulgarian telecom BTC faces cancellation – report
Photo: Nadezhda Chipeva
Creditors of Bulgarian Telecommunications Company (BTC), the country's largest provider of fixed-line telephony and broadband internet, are set to pull the plug on their current efforts to find a buyer for the company, local newspaper Capital Daily reported on May 2.
Citing three separate sources familiar with the deal, the daily said that the creditors found the offers submitted by the bidders unsatisfactory.
Turkish operator Turkcell, the only strategic investor to show interest in BTC, had offered the highest cash amount, but also insisted that a significant proportion of the funds (ranging between 100 million euro and 200 million euro, according to the report) remain in an escrow account until the lawsuits filed by the Bulgarian state (for alleged privatisation contract breaches) are settled.
The other two offers, put in by financial investors – one spearheaded by former BTC owner Thor Bjorgolfsson and a consortium between local Corporate Commercial Bank and Russian banking group VTB – were too low to be considered more than in passing, the daily quoted its sources as saying.
Creditor banks took possession of BTC in 2010 after its majority shareholder PineBridge Investments (the former asset management arm of US insurer AIG, acquired by Hong Kong tycoon Richard Li) breached bond covenants. The majority of BTC's debt, estimated at about 1.65 billion euro, has been contracted as part of its acquisition by AIG from Bjorgolfsson in 2007.
The creditor banks, which include holders of senior and subordinated debt, as well as mezzanine lenders, are yet to announce a decision officially, but there was only a small chance that Turkcell's offer could be accepted in the end, Capital Daily said.
Should the sale be aborted, it was unclear what the creditors' next steps would be, but they were expected to restructure part of the debt by turning it into equity, while some debt might have to be written off. Another sale would not be attempted in the next year or two, the newspaper said, citing people familiar with the current process.Sale of Bulgarian telecom BTC faces cancellation – report
Creditors of Bulgarian Telecommunications Company (BTC), the country's largest provider of fixed-line telephony and broadband internet, are set to pull the plug on their current efforts to find a buyer for the company, local newspaper Capital Daily reported on May 2.
Citing three separate sources familiar with the deal, the daily said that the creditors found the offers submitted by the bidders unsatisfactory.
Turkish operator Turkcell, the only strategic investor to show interest in BTC, had offered the highest cash amount, but also insisted that a significant proportion of the funds (ranging between 100 million euro and 200 million euro, according to the report) remain in an escrow account until the lawsuits filed by the Bulgarian state (for alleged privatisation contract breaches) are settled.
The other two offers, put in by financial investors – one spearheaded by former BTC owner Thor Bjorgolfsson and a consortium between local Corporate Commercial Bank and Russian banking group VTB – were too low to be considered more than in passing, the daily quoted its sources as saying.
Creditor banks took possession of BTC in 2010 after its majority shareholder PineBridge Investments (the former asset management arm of US insurer AIG, acquired by Hong Kong tycoon Richard Li) breached bond covenants. The majority of BTC's debt, estimated at about 1.65 billion euro, has been contracted as part of its acquisition by AIG from Bjorgolfsson in 2007.
The creditor banks, which include holders of senior and subordinated debt, as well as mezzanine lenders, are yet to announce a decision officially, but there was only a small chance that Turkcell's offer could be accepted in the end, Capital Daily said.
Should the sale be aborted, it was unclear what the creditors' next steps would be, but they were expected to restructure part of the debt by turning it into equity, while some debt might have to be written off. Another sale would not be attempted in the next year or two, the newspaper said, citing people familiar with the current process.
Citing three separate sources familiar with the deal, the daily said that the creditors found the offers submitted by the bidders unsatisfactory.
Turkish operator Turkcell, the only strategic investor to show interest in BTC, had offered the highest cash amount, but also insisted that a significant proportion of the funds (ranging between 100 million euro and 200 million euro, according to the report) remain in an escrow account until the lawsuits filed by the Bulgarian state (for alleged privatisation contract breaches) are settled.
The other two offers, put in by financial investors – one spearheaded by former BTC owner Thor Bjorgolfsson and a consortium between local Corporate Commercial Bank and Russian banking group VTB – were too low to be considered more than in passing, the daily quoted its sources as saying.
Creditor banks took possession of BTC in 2010 after its majority shareholder PineBridge Investments (the former asset management arm of US insurer AIG, acquired by Hong Kong tycoon Richard Li) breached bond covenants. The majority of BTC's debt, estimated at about 1.65 billion euro, has been contracted as part of its acquisition by AIG from Bjorgolfsson in 2007.
The creditor banks, which include holders of senior and subordinated debt, as well as mezzanine lenders, are yet to announce a decision officially, but there was only a small chance that Turkcell's offer could be accepted in the end, Capital Daily said.
Should the sale be aborted, it was unclear what the creditors' next steps would be, but they were expected to restructure part of the debt by turning it into equity, while some debt might have to be written off. Another sale would not be attempted in the next year or two, the newspaper said, citing people familiar with the current process.Sale of Bulgarian telecom BTC faces cancellation – report
Creditors of Bulgarian Telecommunications Company (BTC), the country's largest provider of fixed-line telephony and broadband internet, are set to pull the plug on their current efforts to find a buyer for the company, local newspaper Capital Daily reported on May 2.
Citing three separate sources familiar with the deal, the daily said that the creditors found the offers submitted by the bidders unsatisfactory.
Turkish operator Turkcell, the only strategic investor to show interest in BTC, had offered the highest cash amount, but also insisted that a significant proportion of the funds (ranging between 100 million euro and 200 million euro, according to the report) remain in an escrow account until the lawsuits filed by the Bulgarian state (for alleged privatisation contract breaches) are settled.
The other two offers, put in by financial investors – one spearheaded by former BTC owner Thor Bjorgolfsson and a consortium between local Corporate Commercial Bank and Russian banking group VTB – were too low to be considered more than in passing, the daily quoted its sources as saying.
Creditor banks took possession of BTC in 2010 after its majority shareholder PineBridge Investments (the former asset management arm of US insurer AIG, acquired by Hong Kong tycoon Richard Li) breached bond covenants. The majority of BTC's debt, estimated at about 1.65 billion euro, has been contracted as part of its acquisition by AIG from Bjorgolfsson in 2007.
The creditor banks, which include holders of senior and subordinated debt, as well as mezzanine lenders, are yet to announce a decision officially, but there was only a small chance that Turkcell's offer could be accepted in the end, Capital Daily said.
Should the sale be aborted, it was unclear what the creditors' next steps would be, but they were expected to restructure part of the debt by turning it into equity, while some debt might have to be written off. Another sale would not be attempted in the next year or two, the newspaper said, citing people familiar with the current process.
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Turkcell poised to close deal for Bulgaria's BTC - report
Three financial investors had until April 6 to improve their offers, but that was unlikely and Turkcell's odds of success were about 90 per cent, Capital Daily said.
At least four offers for Bulgaria's BTC - report
Former owner, CCB, Greek investor and Spanish reportedly among those making offers.
Burden of debt
Bulgaria's former fixed-line monopoly BTC finds itself on the auction block as creditors seek to recoup losses.
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Appointments
Kamenitza
Yassen Lyubenov is the new head of marketing at Bulgarian beer brewer Kamenitza. Lyubenov has 12 years of experience in marketing in the fast-moving consumer goods sector and has started his career as assistant brand manager at Kraft Foods Bulgaria. He later became brand manager at Wrigley Bulgaria, with responsibilities for Bulgaria and Macedonia. Prior to joining Kamenitza, he was senior marketing manager at Wrigley Russia, where he was in charge of brand expansion into Ukraine, Belarus, Central Asia and the Caucasus. Lyubenov has a bachelor's degree in international business administration from the University of Lincoln, UK.
Employment Agency
Kamelia Lozanova has been appointed the executive director of the Employment Agency, a position she has held ad interim since September 2011, following the resignation of her predecessor Rossitsa Stelianova. Prior to that, Lozanova was the agency's deputy executive director in charge of international projects and European programmes. She has been with the agency for more than 20 years. Lozanova has a degree in Slavonic philology from the St Kliment Ohridski University of Sofia.
Uniqa
Gloria Dimitrova has been appointed executive director and member of the managing board at Uniqa Life Insurance Bulgaria. Dimitrova began her career in 1998 at the insurance supervision directorate, but moved to the private sector and worked for professional services and insurance brokerage firm Marsh&McLennan and US insurer AIG, both in Bulgaria and the Middle East. She joined Uniqa as regional director for Sofia in 2010. Dimitrova has a degree in economics from the University for National and World Economy in Sofia and a master's degree in insurance from the Business Academy in Svishtov.
Beiersdorf
Bedros Kalfayan, general manager of skin care and cosmetics company Beiersdorf Bulgaria, will oversee the parent's company units in Romania and Moldova starting April 1. Following company restructuring, Beiersdorf's subsidiaries in the three countries were merged and are now one unit, part of Beiersdorf Central and Eastern Europe. Kalfayan joined Beiersdorf in 2007 as sales manager and was promoted to general manager in 2008. Prior to that, he worked for Axxon Bulgaria, Ferrero and Rubella. Kalfayan has a master's degree in industrial management from the Technical University in Sofia.
Hewlett-Packard
Sasha Bezuhanova has been appointed Hewlett-Packard public sector director for emerging markets, where she will oversee HP public sector activities in 63 countries, including Bulgaria. Bezuhanova will also be in charge of HP's relations with the European Union. Bezuhanova has been HP's public sector director for Central and Eastern Europe since 2008; before that she was general manager of HP Bulgaria since 1998. Bezuhanova has a master's degree in electronics from the Technical University in Sofia and has completed a managment programme at INSEAD.
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