Three sealed bids for the privatisation of a 95 per cent stake in Boyana Film were opened on February 24.
The binding offers to buy the film studios belong to Ealing Studios, Nu Image Bulgaria and Bavaria Film. A fourth bid for the film making studios, placed by Dragon International Studios Bulgaria Limited, was not opened because the bidder had not made the required deposit.
Ealing Studios Enterprises offers to pay 7 581 945 leva, including 5 187 640 leva via a bank transfer for a 65 per cent stake and 2 394 305 leva in non-cash means (compensatory instruments) for the remaining 30 per cent. The bidder is ready to invest 18 775 968 leva in the studios, including 9 192 401 leva in the first year.
Nu Image Bulgaria offers to pay 6.5 million euro (12.71 million leva), including 4 276 311 euro via a bank transfer for a 65 per cent stake and 1 973 689 euros in non-cash means for the remaining 30 per cent. The bidder is ready to invest 15.6 million euro (30.51 million leva) in the studios, including 11.4 million euro in the first year.
Bavaria Film offers to pay 8 977 626 leva for the 95 per cent stake, including 6 142 579.39 leva via a bank transfer for a 65 per cent stake and 2 835 047.47 leva in non-cash means for the remaining 30 per cent. The bidder is ready to invest 13.2 million leva in the studios, including 6.5 million leva in the first year.
A brief look at the bids shows that Nu Image has offered the highest price for acquiring Boyana Film studios. However, a spokesperson of the tender commission said that the price is not the only criteria. The offers will be ranked not only in terms of price and investments (which will give a maximum of 50 points), but also on the criterion of a five-year plan for development of Boyana Film (also giving 50 points).
The privatisation contract will feature the buyer’s obligation to preserve the company’s main activity for at least ten years, in the first three years to participate in the production of at least two Bulgarian movies and not less than 20 minutes of animation, to invest at least 6 million euro in the first four years, to keep the integrity of the terrain of the company and its status as a film-making complex.
The investors will bear the risk of the numerous restitution claims for the land of the studios, as well as the contracts signed by Boyana Film.
The attractive land in Boyana was the main concern of the local film guild, as it attracts a different kind of investor. Currently the land is said to be over 30 hectares, but according to differing data, between half and two thirds of the land is the subject of restitution claims. That is why the buyers have requested from the Privatisation Agency that part of the studio’s sale price remain blocked in a bank account until the claims are resolved.
The studio includes separate film production, film processing and animation units on its campus in the Sofia suburb of Boyana. In its best years, Boyana Film produced some 20 feature films and 20 television films a year.

– Business Staff
Privatisation priorities

The privatisation of Boyana Film is among our priorities, the newly appointed Economy Minister Milko Kovachev said on February 26.
He listed also the sales of the thermal power plants in Varna, Rousse and Bobov Dol among the priority projects.
The minister added that at this stage it is too early to comment on a possible new procedure for the sale of Bulgartabac. Kovachev said that whether he will be on the supervisory board of the company could be commented  on in a month at earliest, and that only in case the company structure is preserved as one in which the state has a considerable financial share.
As of 2007, Bulgaria will have to come out on the free market in the tobacco production sector and in this sense the price of this branch will drop in the future, Kovachev said. Ordering a new sales procedure is subject to a Parliament decision. We are considering the next steps and this is one of the items on the agenda, Kovachev said.
In response to a question related to the expiry of the arms production licences in March, the Economy Minister said that measures have been undertaken to check the essence of Russian licences. Kovachev added that he is expecting an adequate solution to be put forward within this term.
Privatization of arms production is on the agenda of the Privatization Agency but the matter should be placed in a wider context, related to the Bulgarian army, Kovachev added.