FOUR companies have submitted offers to buy 75 per cent share of Varna Shipyard, the Transport and Communications Ministry announced last Wednesday.
The offers came from the AKB Fores Financial and Industrial Corporation, Baker Invest, Madesta Holdings Ltd, and Tsakos Bulgaria.
Navigation Maritime Bulgare (Navibulgar) will set up a joint venture with the new owner that will acquire a 75 per cent share of the capital of the shipyard. Navibulgar will own 25 per cent, down from the 100 per cent it holds currently.
The four bids were submitted in the required format, said the commission, which is to choose a winner.
As the offers were opened, it turned out that Baker Invest and Madesta Holding had failed to provide the required 500 000 leva guarantee.
The commission has to decide whether all documents are valid and whether all offers qualify. The financial part of the offers will be opened last, said Slaveiko Staikov of the commission.
After the acquisition, the investor will be required to pledge 26 per cent of its shares in the Central Depository as security for the performance of activities that it is expected to carry out.
If in the first three years after the sale the shipyard fails to make an annual average of $40 million from its core business, the investor will lose the pledged 26 per cent of its shares and Navibulgar will acquire them, Transport and Communications Minister Plamen Petrov said.
"We will employ all legal methods to prevent any further participation of two most incorrect bidders in the tender for Varna Shipyard," Nikola Banev, president of AKB Fores said last Friday, quoted by Pari daily.
Madesta Holding submitted a corporate guarantee, not a bank one.
"I have no problems issuing a corporate guarantee for Bill Gates for some $100 million, yet it will bear no legal weight. As for Baker Investment's shortage of money, it is logical and natural to ask us how this British candidate will manage the shipyard if at this early stage they have trouble calculating the foreign exchange rate," Banev said.
The British company presented a bank guarantee for 243 000 euro (475 226 leva), while the required deposit was 500 000 leva.
"AKB Fores is the winner from the very start of the procedure, we have contacts and conduct negotiations with Venezuelan and Iranian oil companies on both ship construction and on the maintenance of their huge fleets," Banev said.
According to Pari daily, three scenarios are possible for the deal. Baker Investment is the favourite of Navibulgar. The British company is one of the likely buyers, while AKB Fores has no chance to remain in the procedure.
The second scenario envisages another winner. Backed by the ruling National Movement Simeon II MPs from Varna, this is Maritime Technical Group, which is bidding with Tsakos Shipping and Trading of Greece.
The third scenario is possible if it turns out that Baker Investment's bank guarantee does not meet requirements, or if the Varna lobby fails to get their candidate approved. The Transport Minister could schedule a new tender if the financial offers of the candidates fall short of Navibulgar's requirements for a strategic partner.
The offers came from the AKB Fores Financial and Industrial Corporation, Baker Invest, Madesta Holdings Ltd, and Tsakos Bulgaria.
Navigation Maritime Bulgare (Navibulgar) will set up a joint venture with the new owner that will acquire a 75 per cent share of the capital of the shipyard. Navibulgar will own 25 per cent, down from the 100 per cent it holds currently.
The four bids were submitted in the required format, said the commission, which is to choose a winner.
As the offers were opened, it turned out that Baker Invest and Madesta Holding had failed to provide the required 500 000 leva guarantee.
The commission has to decide whether all documents are valid and whether all offers qualify. The financial part of the offers will be opened last, said Slaveiko Staikov of the commission.
After the acquisition, the investor will be required to pledge 26 per cent of its shares in the Central Depository as security for the performance of activities that it is expected to carry out.
If in the first three years after the sale the shipyard fails to make an annual average of $40 million from its core business, the investor will lose the pledged 26 per cent of its shares and Navibulgar will acquire them, Transport and Communications Minister Plamen Petrov said.
"We will employ all legal methods to prevent any further participation of two most incorrect bidders in the tender for Varna Shipyard," Nikola Banev, president of AKB Fores said last Friday, quoted by Pari daily.
Madesta Holding submitted a corporate guarantee, not a bank one.
"I have no problems issuing a corporate guarantee for Bill Gates for some $100 million, yet it will bear no legal weight. As for Baker Investment's shortage of money, it is logical and natural to ask us how this British candidate will manage the shipyard if at this early stage they have trouble calculating the foreign exchange rate," Banev said.
The British company presented a bank guarantee for 243 000 euro (475 226 leva), while the required deposit was 500 000 leva.
"AKB Fores is the winner from the very start of the procedure, we have contacts and conduct negotiations with Venezuelan and Iranian oil companies on both ship construction and on the maintenance of their huge fleets," Banev said.
According to Pari daily, three scenarios are possible for the deal. Baker Investment is the favourite of Navibulgar. The British company is one of the likely buyers, while AKB Fores has no chance to remain in the procedure.
The second scenario envisages another winner. Backed by the ruling National Movement Simeon II MPs from Varna, this is Maritime Technical Group, which is bidding with Tsakos Shipping and Trading of Greece.
The third scenario is possible if it turns out that Baker Investment's bank guarantee does not meet requirements, or if the Varna lobby fails to get their candidate approved. The Transport Minister could schedule a new tender if the financial offers of the candidates fall short of Navibulgar's requirements for a strategic partner.
