THE privatisation procedure of Varna shipyard has come to a dead-end only six months after it was officially launched by former Transport Minister Plamen Petrov.
The sale of 75 per cent of the assets of the shipyard has been halted after the inter-departmental commission appointed by the Minister of Transport to monitor the deal received a letter from the approved candidate, British Baker Investments, stating their intention to withdraw from the procedure.
For more than 90 years, Varna shipyard has manufactured more than 800 ships for ship owners from 26 countries. In 2002, however, the shipyard declared itself insolvent and was subsequently offered for privatisation by public tender. The state-owned Navigation Maritime Bulgare (Navibulgar) acquired the shipyard after no foreign investors showed an interest in the deal.
The second attempt to sell the assets of the shipyard envisaged the establishment of a joint venture between Navibulgar and a strategic investor and a minimum sale price of no less than 25 million leva. The investor also had to secure 26 per cent of his stock in the shipyard for at least three years.
During this period, the investor was obliged to achieve a turnover in shipbuilding to the amount of no less than $40 million. If this was not been achieved, Navibulgar would re-surface as a majority owner of the shipyard.
A new strategy for the sale of Varna shipyard is yet to be defined. In the two most likely scenarios, the shipyard will be sold either separately or together with Navibulgar. In either case, the second ranking candidate in the failed privatisation deal - AKB Fores Corporation - will not be negotiated with, a Ministry of Transport and Communications press statement said.
The sale of 75 per cent of the assets of the shipyard has been halted after the inter-departmental commission appointed by the Minister of Transport to monitor the deal received a letter from the approved candidate, British Baker Investments, stating their intention to withdraw from the procedure.
For more than 90 years, Varna shipyard has manufactured more than 800 ships for ship owners from 26 countries. In 2002, however, the shipyard declared itself insolvent and was subsequently offered for privatisation by public tender. The state-owned Navigation Maritime Bulgare (Navibulgar) acquired the shipyard after no foreign investors showed an interest in the deal.
The second attempt to sell the assets of the shipyard envisaged the establishment of a joint venture between Navibulgar and a strategic investor and a minimum sale price of no less than 25 million leva. The investor also had to secure 26 per cent of his stock in the shipyard for at least three years.
During this period, the investor was obliged to achieve a turnover in shipbuilding to the amount of no less than $40 million. If this was not been achieved, Navibulgar would re-surface as a majority owner of the shipyard.
A new strategy for the sale of Varna shipyard is yet to be defined. In the two most likely scenarios, the shipyard will be sold either separately or together with Navibulgar. In either case, the second ranking candidate in the failed privatisation deal - AKB Fores Corporation - will not be negotiated with, a Ministry of Transport and Communications press statement said.
