International financial group VTB Capital has sold its share in Bulgartabak

June 9, 2014

"VTB capital" has left tobacco business: InvestBank has sold share in the biggest Bulgarian cigarettes manufacturer - "Bulgartabak". On this transaction it could have gained about 30 million euro.

According to data of Austrian register, BT Invest GmbH that owns 79.83% of Bulgarian cigarettes manufacturer "Bulgartabak" has changed owner: 100% of Companies now belong to Livero Establishment. In the past Company belonged to Cyprus VTB Capital Pe Investment Holding Ltd. "VTB capital" Press service has refused comments.

BT Invest has acquired "Bulgartabak" on privatization auction in November 2011, paying for 79.83 % 100.1 million euro. BT Invest has undertaken during two years to invest in "Bulgartabak" 7 million euro and during five years to buy 5000 tons of Bulgarian tobacco a year. About plans to sell Company to strategic investor VTB has informed in March 2013.

"Bulgartabak" was sold last year to local, Bulgarian investors has informed source in VTB group. Active, according to his words was sold with 30% premium to entry price. It appears that transaction amount could make about 130 million euro. On the exchange BT Invest packet costs significantly more: on April 4th "Bulgartabak" capitalization on Sofia stock exchange was 485.3 million USD. Last year Company was even more expensive: on December 27th 2013 - 549.6 million USD.

Livero Investments registered in Lichtenstein has filed application for acquiring BT Invest GmbH in the middle of February, representative of Bulgarian Commission on Protection of Competition (CPC) informed. At the end of February Bulgarian newspaper "Capital" with reference to CPC has informed that Livero Investments is singly controlled by TGI Middle East Company but its beneficiaries are not known. According to "Capital" data Company has connection with owner of Corporate Commercial Bank (CCB, one of the biggest banks in Bulgaria). CCB and “VTB capital” have partnership relations for a long time now" in 2012 they have acquired 93.99% of Bulgarian Telecommunications Company (Vivacom brand), but in 2013 "VTB capital" has acquired 9.9% of CCB.

"Bulgartabak" is the biggest cigarettes manufacturer in Bulgaria (manufactured 27 billion cigarettes in 2013): according to their own data it takes 32% if the market, significant part of manufactured products is exported. Company earnings for 2013 have made 499 million lev (about 255 million euro).