German-led consortium KG Maritime Shipping and Bulgaria's Privatisation Agency has signed a deal for the sale of 70 per cent of maritime shipping company Navibulgar, Bulgarian Focus news agency said on August 8 2008.

The Government decided to sell 7.6 million of Navibulgare shares, for a total of 440.1 million leva. The state will own the remaining 30 per cent of the company's shares for the next several years, according to the Government's privatisation strategy.

The deal, approved by the Cabinet on May 15, was not a surprise since KG Maritime Shipping, a link-up between German and Bulgarian company, placed the only valid bid for the shipping company, although 24 parties bought tender documentation in 2007 when the tender procedures were launched.

Besides the price money for the majority stake, the consortium pledged to invest 779.9 million leva over the next 10 years, including the acquisition of 25 new ships, which would allow it to replace some of Navibulgare's current fleet.

The consortium will have to maintain a minimum number of sailors on payroll through that period and hike wages by at least 15 per cent.

German-registered KG Maritime Partners, owned by Duesseldorf-based Martrade Transport&Shipping GmbH and Mumbay-based Accord Ship Management (Pvt) Ltd, holds 70 per cent in the consortium.

The remainder is owned by Bulgarian firm Advance Properties Sofia, controlled by the brothers Kiril and Georgi Domuschievi, according to Bulgarian-language Dnevnik daily.