THE Privatisation Agency has certified six firms as strategic investors in the bidding for a 67 per cent stake in Bulgaria's electricity distribution companies (EDCs).
The six are Enel of Italy, E.ON of Germany, CEZ of the Czech Republic, EVN of Austria, and ABB of Switzerland. Reportedly, all of them have purchased information memoranda.
However, RAO of Russia is out of the race. The company does not comply with the requirements to participate. Criteria for eligibility include that strategic investors must have a minimum of 700 million euro of their own capital, and annual sales of more than 700 gigaWatt-hours last year. Bidders must have participated in liberalised energy markets, of which 26.5 per cent must have been opened to competition since April. They must have investment-grade credit ratings.
The PA has extended the deadline for submitting indicative offers to February 16.
At stake is the percentage in the country's seven power utilities, which for the purposes of the bidding have been grouped in three equity pools.
The Western Bulgaria pool includes Sofia, the Sofia municipal area, and Pleven.
The Southeastern Bulgaria pool includes Plovdiv and Stara Zagora, and the one for Northwestern Bulgaria is made of the power utilities in Varna and Gorna Oryahovitsa.
While candidate firms are being allowed to bid for all three pools, they may acquire only one.
Announcing the competition in October last year, Deputy Prime Minister Lydia Shuleva said bidders would be required to place bids for at least 51 per cent of the companies.
A winning bidder for a 51 per cent stake would be allowed to team up with another investor to buy a further 16 per cent, Shuleva said.
Offshore companies, consortiums or firms established specially for this privatisation are not being allowed to bid.
- Business Staff
The six are Enel of Italy, E.ON of Germany, CEZ of the Czech Republic, EVN of Austria, and ABB of Switzerland. Reportedly, all of them have purchased information memoranda.
However, RAO of Russia is out of the race. The company does not comply with the requirements to participate. Criteria for eligibility include that strategic investors must have a minimum of 700 million euro of their own capital, and annual sales of more than 700 gigaWatt-hours last year. Bidders must have participated in liberalised energy markets, of which 26.5 per cent must have been opened to competition since April. They must have investment-grade credit ratings.
The PA has extended the deadline for submitting indicative offers to February 16.
At stake is the percentage in the country's seven power utilities, which for the purposes of the bidding have been grouped in three equity pools.
The Western Bulgaria pool includes Sofia, the Sofia municipal area, and Pleven.
The Southeastern Bulgaria pool includes Plovdiv and Stara Zagora, and the one for Northwestern Bulgaria is made of the power utilities in Varna and Gorna Oryahovitsa.
While candidate firms are being allowed to bid for all three pools, they may acquire only one.
Announcing the competition in October last year, Deputy Prime Minister Lydia Shuleva said bidders would be required to place bids for at least 51 per cent of the companies.
A winning bidder for a 51 per cent stake would be allowed to team up with another investor to buy a further 16 per cent, Shuleva said.
Offshore companies, consortiums or firms established specially for this privatisation are not being allowed to bid.
- Business Staff
