Bulgartabac Holding Can be Privatized by the Middle of 2010

Source from:  Sofia Echo 12/31/2009

Bulgartabac's main building in Sofia

Bulgarian state-owned cigarette maker Bulgartabac Holding could be fully privatized by the middle of 2010, Economy and Energy Minister Traicho Traikov told reporters on December 29 2009. According to Traikov, the state could seek about 100 million euro from potential buyers. An ad-hoc council of four ministers will be formed so that the privatization procedure is conducted transparently, he said. These will include Economy Minister Traikov, Interior Minister Tsvetan Tsvetanov, Finance Minister Simeon Dyankov and Agriculture Minister Miroslav Naidenov. Dyankov and Tsvetanov will be brought on board because of the expected increase in cigarette smuggling in the first half of 2010 when higher cigarette prices will be introduced because of the raised excise duties, Traikov said. He noted that cigarette smuggling will be one of the main challenges faced by Bulgartabac next year to keep its current market share of 46 per cent. "I think that the most important thing we need to do now is to sell Bulgartabac in a quick, transparent and competent way," Bulgarian-language Dnevnik daily quoted Traikov as saying. The Economy Ministry has already started a procedure for picking a consultant on the privatization deal who, according to Traikov, must be a reputable investment bank experienced in such deals. Bulgartabac was established in 1947. It is based in Sofia and includes 22 joint-stock subsidiary companies in the country's tobacco-growing regions. Bulgartabac produces more than 50 cigarette brands and sub-brands using domestic and imported tobacco. Among the company's brands are Victory, Femina, Prestige, Slims, Bulgartabac, MM, Melnik, Seven Hills, Global, Bridge, Tresor, BT, Charlie, Nevada, Orient Express and Country. When he came to office in the summer of 2009, Traikov pledged to stage the sell-off of Bulgaria's tobacco behemoth Bulgartabac Holding by the end of the year. He later said that plans should be postponed at least until the first quarter of 2010 because the method had not yet been chosen. Enditem