EVN Bulgaria is the first electricity distributing company whose shares will be sold on the Bulgarian Stock Exchange (BSE). The Financial Supervision Commission approved on Tuesday (6 December) Prospectus for admission to trading on a regulated market of the two Plovdiv-based companies: EVN Bulgaria Electrosnabdyavane AD and EVN Electrorazpredelenie Bulgaria JSC, operating in southeastern Bulgaria.
The first issue will be of BGN1.882 million divided into 188,200 ordinary shares with a nominal value of BGN10 each. Through a public offering on BSE, 62,106 shares will be floated and they represent 33% of the capital of EVN Bulgaria Electrosnabdyavane, owned by the Bulgarian state. The issue of shares by EVN Bulgaria Electricity amounts to BGN1.564 million, divided into 156,400 shares with a nominal value of BGN10 each. 51,612 shares, or 33% owned by the Bulgarian state will be placed on the stock exchange through a public offering.
The sale of the remaining stakes in both companies will be through the stock exchange, the decision was taken by the Agency for Privatization and Post Privatization Control. The public offering of shares will take place on the Privatisation market if BSE at a mixed closed auction, and the Agency is ready to start trading in these stocks by the end of December. The minimum price at which shares of companies will be offered for sale on the regulated market in the country is determined by the privatization authority. However, it will be proposed by investment intermediary of the privatization of these companies – Bulbrokers, a firm selected on 22 June this year.
On their way to get placed on BSE are the papers of other electricity distribution companies. The Privatisation Agency signed a contract with First Financial Brokerage House, which won the competition for investment intermediary for the sale by public offering of two stakes (at 33%) – 49,533 shares of the capital of E. ON Bulgaria Sales’ AD Varna and 43,494 shares of E. ON Bulgaria Grid SA, Varna.
Central Cooperative Bank AD is the consultant for the sale (at 33%) through a public offering of 63,624 shares of CEZ Bulgaria, Sofia, and 1,650 shares of CEZ Electro Bulgaria, Sofia.
Meanwhile, however, the German company E. ON completed the sale of its subsidiary E. ON Bulgaria (100%), which operates on the market in northeastern Bulgaria. The buyer is the Czech company Energo-Pro which has paid EUR133 million euros. This in turn raises new questions about the privatization of state shares and several experts predict the delay of the procedure for their public offering. This would be needed mostly because of technical changes to the prospectus due to the change in ownership.
German company E. ON is leaving the Bulgarian market, but without having fulfilled the investment commitments in the privatization contract, said this week the President of the State Energy and Water Regulatory Angel Semerdzhiev.
Czech Energo-Pro will take possession of the EDC as of the beginning of 2012. The completion of the transaction depends on the authorization of the Commission for Protection of Competition and a change in licenses for distribution and supply that are issued bythe State Energy and Water Regulatory Commission.
