[Intl-tobacco] 3 companies interested in Bulgarian Bulgartabak sale (fwd)

[Robert Weissman]

Three companies interested in Bulgarian Bulgartabak sale
by Violeta Simeonova / Bridge News
Source: NewsEdge, Friday, 2/11/00

Sofia--Feb 10--At least three multinational companies are interested
in the sale of a 51% stake in Bulgaria's state-owned tobacco and
cigarette maker, Bulgartabak Holding, the Deputy Minister of the
Economy Christo Mihailovsky told local media in Plovdiv Thursday.
Philip Morris, British-American Tobacco and Galaghers have already
acquired information packages on Bulgartabak. The privatization
procedure for the state major started January.

* * *

According to Michailovsky, it is expected that RJ Reynolds and Spain's
SEITA will also buy information packages for Bulgartabak.

Letters of intent must be submitted by Feb 29, bids will be accepted
by Mar 20.

Under the privatization scheme, a 51% stake in the tobacco major will
be sold to a strategic investor. The deposit for participation is 1
million euros. The government expects that the deal to fetch up to $150
million.

Under the privatization scheme, a 35% stake will be sold directly to a
strategic investor, which has experience in the tobacco and
cigarette-making industry. Another 16% of the company will be
conditionally sold to the same strategic investor and blocked in a
special account for 6 to 12 months till the buyer fulfills all the
conditions required by the contract. The state will also keep a
so-called "golden share" to have a veto on decisions about
Bulgartabak's future.

Bulgartabak has a 95% market share in Bulgaria. Consultant on the deal
is a consortium of Creditanstalt Investment Bank and Dresdner Kleinwort
Benson Limited.

"Bulgartabak's 1999 preliminary profit was 60 million leva, the
turnover was over 1 billion. "
Bulgartabak has 3 cigarette factories in Russia, 1 in Ukraine and 1 in
Romania.

(1.95583 leva--1 euro) End

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