A large energy conglomerate comprising of state run-energy companies could become one of the major players on the Bulgarian Stock Exchange (BSE). The energy conglomerate could become fact by the middle of next year, Deputy Economy and Energy Minister Galina Tosheva-Grigorova told SeeNews wire agency on November 20.
“We expect to have, by the end of the year, a proposal for the restructuring, and respectively, for establishing such a holding company including a detailed action plan,” she said. The energy mega-structure will incorporate Bulgaria’s sole nuclear power plant Kozloduy, natural gas supplier Bulgargaz, power grid operator NEC, coal-fired power plant Maritsa East 2 and Maritsa East coal mines. By setting up the new company the Government aims to restore the country’s role as a leading power exporter in South Eastern Europe, which Bulgaria lost after closing down a second pair of 440MW nuclear reactors at Kozloduy under pressure from the European Union.
“The listing on a stock market is just an option for this structure,” Tosheva-Grigorova said. The holding could be listed on the BSE first and on an international stock exchange later she said.
Bulgargaz had already announced plans to list shares on the BSE few months ago. The company said it would use the BSE in order to raise its price and attract financing for its development plans, if the Economy and Energy Ministry approved the step.
Meanwhile the Sofix index, tracking the 17 most liquid shares on the BSE, lost 3.89 per cent to 1657.88 points on November 20, and the broad BG40 index dropped 4.8 per cent to 509.95 points. The sentiment was negative, continuing what had been happening in previous trading sessions, a broker told SeeNews.
Shares have been losing value since the beginning of November, when some local investment intermediaries raised concerns that some shares were allegedly overvalued. In total 140 shares dropped, 24 rose and 12 closed unchanged on November 20. Holding company Industrial Holding Bulgaria continued its November 19 losses, ending 10.5 per cent lower at 9.70 leva. About 18 820 of its shares changed hands on November 20. The company was currently increasing its capital, which was the reason for the bigger-than-average fall, the broker said.
