Pazardjik BT, formerly a part of state-owned Bulgartabac Holding and now owned by Bulgarian firm Chesteam, is the sole eligible bidder for 67 per cent of Bosnian cigarette factory Fabrika Duhana Mostar, SeeNews agency reported, quoting a statement of the Bosnia and Herzegovina privatisation agency.

The procedure attracted two offers, the other from an unnamed Canadian company.

The privatisation authority has not put a minimum price for the stake but values the shareholding at 6.95 Bosnian marka or 3.5 million euro. The remainder is held by small private shareholders.

This privatisation procedure is the second attempt to sell the company after a flop in 2005. Fabrika Duhana Mostar has been operating at a loss over the past three years. Its output dropped from 769 tonnes of processed tobacco in 2000 to 177 tonnes in 2006.

The factory is one of Bosnia’s three cigarette factories, the two others being in Sarajevo and Banja Luka.

Chesteam is 100 per cent owned by Chavdar Peichev, who is also on the board of directors of coal-mining firm Otkrit Vugledobiv, owned by controversial businessman Hristo Kovachki.