THE Privatisation Agency (PA) has filed an appeal against the Supreme Administrative Court's (SAC) decision to cancel the choice of Tobacco Capital Partners and Clar Innis' consortium as preferred buyer of Bulgartabac Holding.
The appeal was submitted on the last possible day to appeal against the SAC's decision. The SAC said that Tobacco Holding GmbH of Austria, Consortium Metatabac, and the Tobacco Capital Partners Consortium had also challenged its decision.
The PA disagrees with the SAC's reasoning that favourable changes in the financial condition of Bulgartabac Holding had occurred, the PA press office said. The PA hopes that its appeal will be considered promptly so as to reduce the negative effect of the delay of the privatisation procedure to a minimum.
In late October the SAC cancelled the PA's decision to name the Deutsche Bank-supported consortium of Tobacco Capital Partners - Clar Innis as successful bidder for the purchase of 80 per cent of Bulgartabac Holding's capital. The SAC gave the reason that there had been favourable changes in the holding's financial indicators and that the PA had violated the Ordinance on Competitions by failing to demand a higher price for the tobacco holding.
According to the PA, the conclusion of the SAC members is based on data drafted in compliance with International Accounting Standards. However, Bulgarian legislation recognises only the National Accounting Standards as valid, the PA argued.
Three consortiums - Tobacco Capital Partners - Clar Innis, Rosbulgartabac, and Tobacco Holding were admitted to the final stage of the competition for Bulgartabac. The offers were ranked according to price offered, investments, quantities of tobacco purchased, and jobs.
Tobacco Capital Partners - Clar Innis had the highest points at 98.15, while Rosbulgartabac was ranked third with 82.02 points. Tobacco Capital Partners - Clar Innis offered a price of 110 million euro with investments to the amount of 71.185 million euro.
The three bids are valid until November 19 and the PA said it would ask the bidders to confirm their offers.
The SAC said that, under a requirement of article 218 of the Code of Procedure, it has sent copies of the three appeals (of Tobacco Holding, Consortium Metatabac, and Tobacco Capital Partners) and the written evidence presented to the other parties on the case. The latter can submit written replies within 14 days.
The SAC announced that it has put the PA's appeal on hold and instructed it to correct the irregularities and submit another copy of the appeal and the written evidence that are to be handed to the interested parties.
Apostol Apostolov, PA Executive Director, expressed hope on Sunday that the privatisation of Bulgartabac Holding and the judicial procedure would be completed by the year's end. Apostolov was interviewed in Nedelya 150, Bulgarian National Radio's Sunday talk show. Apostolov said the PA had done nothing wrong during the privatisation procedure. Everything was done in compliance with the law, the procedure and the rules for holding the competition, he said.
"I hope that having appealed against the SAC decision, we will be able to present enough facts to show that the purely economic arguments invoked by the court can be given a more expert and correct interpretation," Apostolov said.
The appeal was submitted on the last possible day to appeal against the SAC's decision. The SAC said that Tobacco Holding GmbH of Austria, Consortium Metatabac, and the Tobacco Capital Partners Consortium had also challenged its decision.
The PA disagrees with the SAC's reasoning that favourable changes in the financial condition of Bulgartabac Holding had occurred, the PA press office said. The PA hopes that its appeal will be considered promptly so as to reduce the negative effect of the delay of the privatisation procedure to a minimum.
In late October the SAC cancelled the PA's decision to name the Deutsche Bank-supported consortium of Tobacco Capital Partners - Clar Innis as successful bidder for the purchase of 80 per cent of Bulgartabac Holding's capital. The SAC gave the reason that there had been favourable changes in the holding's financial indicators and that the PA had violated the Ordinance on Competitions by failing to demand a higher price for the tobacco holding.
According to the PA, the conclusion of the SAC members is based on data drafted in compliance with International Accounting Standards. However, Bulgarian legislation recognises only the National Accounting Standards as valid, the PA argued.
Three consortiums - Tobacco Capital Partners - Clar Innis, Rosbulgartabac, and Tobacco Holding were admitted to the final stage of the competition for Bulgartabac. The offers were ranked according to price offered, investments, quantities of tobacco purchased, and jobs.
Tobacco Capital Partners - Clar Innis had the highest points at 98.15, while Rosbulgartabac was ranked third with 82.02 points. Tobacco Capital Partners - Clar Innis offered a price of 110 million euro with investments to the amount of 71.185 million euro.
The three bids are valid until November 19 and the PA said it would ask the bidders to confirm their offers.
The SAC said that, under a requirement of article 218 of the Code of Procedure, it has sent copies of the three appeals (of Tobacco Holding, Consortium Metatabac, and Tobacco Capital Partners) and the written evidence presented to the other parties on the case. The latter can submit written replies within 14 days.
The SAC announced that it has put the PA's appeal on hold and instructed it to correct the irregularities and submit another copy of the appeal and the written evidence that are to be handed to the interested parties.
Apostol Apostolov, PA Executive Director, expressed hope on Sunday that the privatisation of Bulgartabac Holding and the judicial procedure would be completed by the year's end. Apostolov was interviewed in Nedelya 150, Bulgarian National Radio's Sunday talk show. Apostolov said the PA had done nothing wrong during the privatisation procedure. Everything was done in compliance with the law, the procedure and the rules for holding the competition, he said.
"I hope that having appealed against the SAC decision, we will be able to present enough facts to show that the purely economic arguments invoked by the court can be given a more expert and correct interpretation," Apostolov said.
