National flag-carrier Bulgaria Air may go private by June

[Suzanne]

The earliest target for the completion of the privatisation procedure for Bulgaria Air is June, Bulgarian transport minister Petar Mutafchiev said on Thursday, February 2, after the government approved the sell-off strategy forthe national flag-carrier.

The shortest timeframe for the closure of the deal after the strategy is okayed by parliament is 3 months, said Privatisation Agency chief Todor Nikolov.
Bulgarian carrier Hemus Air, owned by Varna-based economic group TIM, the Austrian and the Scandinavian airlines have indicated their interest in the pending sell-off, said Mutafchiev.
The parameters of the buy offers that will carry the most weight are the price tag and the investment program for the first 2 years after the privatisation of the company, said Nikolov.

In the first stage of the sell-off procedure, the candidates will have to submit preliminary information on the cash bid and the business plan. The candidates that advance to the second stage of the procedure will have to present their definitive business plan and guarantee that they will raise Bulgaria Air's capital to 30.150 mln levs.
Bulgaria is selling 99.99% of the national flag-carrier but will retain a golden share in the company.

The Bulgaria Air sell-off procedure is open to strategic and financial investors wherein a Bulgarian or EU entity owns at least 51%.
Air carriers seeking entry to the procedure will have to certify revenues of 150 mln euro for each of the previous 2 years and passenger traffic of at least 750,000.
The financial investors will be required to manage over 250 mln euro in assets or to have equity holdings in excess of 150 mln euro.

(Dnevnik)
http://news.dnevnik.bg/

[Suzanne]

Bulgaria to recast sale strategy for national flag-carrier

The assessment criteria for bids for the 99% state-owned stake in national flag-carrier Bulgaria Air will be revised to rule out subjective bias, chairman of the parliamentary transport committee Yordan Mirchev said on Monday, February 13.
The sell-off strategy will assign a specific weight to each of the judging criteria, Mirchev said, adding that this would ensure the procedure will not repeat the ill fate of the privatisation of former flag carrier Balkan Airlines.

The strategy envisages that the candidates are ranked according to the cash bid, the volume of investment in the carrier's air fleet and employment program.
Eligible candidates are strategic investors which have reported annual proceeds of at least 100 mln euro during each of the past two years and have transported at least 750,000 passengers, or financial investors managing 250 mln euro in assets and holding 150 mln euro in equity.

The competition will be open to consortia of financial and strategic investors, as well, according to transport minister Petar Mutafchiev.
Local carriers Hemus Air, Air Sofia and Air Via have announced they may launch talks to form a tie-in for the purposes of the sell-off.
Mirchev said a major Bulgarian financial institution also meets the sell-off requirements but refused to name it.
The future buyer, irrespective of whether a foreign or a local entity, must commit to develop and upgrade the company, Mirchev said.
The sell-off strategy was approved by the cabinet last week but has still not been moved for discussion to the transport committee.
The requirement concerning the size of the future candidates' revenues and their assets should be extended to three years at least to showcase their financial stability, Ivan Ivanov MP of the right-wing DSB said, adding that strategic investors should be given the edge.

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