The Plovdiv and Stara Zagora factories of former tobacco monopoly Bulgartabac will be sold via the bourse, Bulgarian Economy and Energy Minister Petar Dimitrov told private broadcaster bTV on March 18.

Trade unions and the management of both factories have already struck an agreement, according to which each employee would receive 1.8 gross salaries for each year of employment at Bulgartabac, entitling workers either factory to get up to 36 000 leva in compensations.

In February, the management of the Bulgartabac holding company offered the Plovdiv and Stara Zagora factories to discontinue producing Bulgartabac-owned brands yet retain their cigarette production licences. Dimitrov said that the two factories have attracted investor interest, but it was still unclear whether the interest is toward the factories' real estate or the line of business.

The Sofia and Blagoevgrad factories have also grabbed the attention of strategic investors, Dimitrov said. If these investors confirm their interest, the government will opt for a sale to a strategic investor, as opposed to bourse sale.

Bulgartabac's existing privatisation strategy focuses on selling to a strategic investor. However, the management of the holding insists on sale through the bourse. If, however, bourse sale eventually proves to be the preferred method for the two profit-making companies, in Sofia and Blagoevgrad, then the government will have to resort to changes to the Bulgartabac strategy or the Privatisation Act.