Bulgarian Telecommunication Company (BTC) shareholders held their annual shareholder meeting on June 19, where they voted for a gross dividend of 0.55 leva a share for 2006. June 29 is the last date for concluding BTC share deals on the Bulgarian Stock Exchange and when buyers will have the right of dividend.

The shareholders also approved the idea for BTC to provide BTC Mobile with 240 million leva through putting money into BTC Mobile’s capital. The number, amount and terms of the financial payments will be set by the BTC’s managing board.

The general assembly also approved the 2006 management report, 2006 financial report and the report of the specialised audit of the inventory done on the annual and consolidated 2006 financial reports.

During the meeting BTC chose a registered auditor for 2007. In addition, the shareholders resolved the managing board members of responsibility for their activities in 2006, including those who had left the managing board before the date of the shareholder meeting.

BTC’s revenue for 2006 was more than 994 million leva and the net profit of the company was more than 282 million leva.

On June 19, the company also won the tender from the State Administration and Administrative Reform Ministry for providing internet traffic to the e-government control centre. The price bids were also offered on June 19 and BTC offered 71 600 leva (excluding VAT), for a 36 month period. The price offered was given a 50 per cent relative weighting when evaluating all the criteria of the bid. Netera and Spectrum Net, which were the other participants, offered 132 696 leva and 72 000 leva, respectively.

BTC is the country’s former state telecommunication monopoly. In June 2004, Bulgarian authorities sold a 65 per cent stake in BTC to a group of investors led by US private equity fund Advent for 280 million euro, including a 50 million euro increase to the company’s capital base.

BTC had 2.9 million phone connections installed at the end of 2004 and about 70 per cent of its revenues comes from the fixed line market.

In December 2005, Icelandic tycoon Thor Bjorgolfsson bought an option for the 65 per cent stake in BTC from Advent International.

Landsbanki Luxembourg, controlled by Bjorgolfsson, expanded its ownership in the company to 13.38 per cent from 8.39 per cent after operations on the local stock exchange in March 2007.

In April 2007, AIG Global Investment Group (AIG GIG), through its company AIG Capital Partners, agreed to buy Bjorgolfsson’s 65 per cent stake in BTC for 1.08 billion euro. AIG GIG is expected to complete the deal in the end of June 2007, when the ban on the sale of BTC stakes set at the 2004 privatisation deal, will expire.