The three companies that bought tender documentation for the Sopot Military Factories VMZ, submitted documents for compliance with the pre-qualification requirements in the tender for the sale of 118 million shares, or 100% of the capital of VMZ JSC, said the Agency for Privatization. All three companies are Bulgarian investors entering the category strategic investor – Sage Consultants Ltd. of Sofia, EMCO Ltd. Sofia and Dunarit of Ruse.
Now the ball is back in the Agency for Privatization. Experts are to get familiar with the documents submitted and then issue registration certificates to participants who meet the conditions of the competition. Then they have the right to buy the information memorandum and submit binding offers. The state started hurrying with the privatization of VMZ – Sopot in the last two weeks, and this gives the impression that there won’t be a delay of an administrative nature at this stage.
Even now these three companies have business relations with the company and know VMZ, which made the head of the Privatization Agency Emil Karanikolov hope that by the end of November there will be a bid or bids. Applicants must not forget and they want a deposit for participation, which amounts to 3 million, or the equivalent in dollars. Then what is left is to hear the final word from the Council of Ministers, which will announce the ranking of the candidates.
Unlike other privatizations the terms of this one have a very strong social component. Perhaps the choice of an investor will be difficult, as well as the agreeing the terms of keeping the core activity of the company and the number of jobs. The privatization strategy of VMZ prevents mass dismissals and slashing of the wages within three years after the sale of the plant. The prospective owner of VMZ – Sopot, is expected to save the company from bankruptcy that seems to be looming on the horizon providing the necessary financial resources and more orders for the factory.
Rulers were forced to operate in an emergency situation after the military factory workers launched a strike for the salaries they earned but have not not received since August, which amounted to BGN1.38 million. Every employee in the factory has to take an average of 1,000 levs. Now a balance is being maintained, but it is not clear how long and whether anger will pour into an effective strike, closing roads near Sopot, central Bulgaria.
Along strike, the workers from the military factory have earned the right to receive information about the money coming into the plant and what it is used for.
