Bulgaria's Corporate Bank Head Denies Links to Bulgartabac Bidders

Business » INDUSTRY | July 6, 2011, Wednesday // 13:52
Bulgaria: Bulgaria's Corporate Bank Head Denies Links to Bulgartabac Bidders Tsvetan Vassilev is majority owner and chair of the Supervisory Board of Bulgaria's Corporate Commercial Bank, which currently holds a 8.11% in Bulgartabac. Photo by BGNES

The head of Bulgaria's Corporate Commercial Bank, which is believed to finance the media group of mogul Irena Krasteva, has denied he is interested in the privatization of the country's state tobacco giant Bulgartabac Holding.

"I don't want to buy the state-owned stake in Bulgartabac, I have not even bought documents for the tender," Tsvetan Vassilev, majority owner and chair of the Supervisory Board of Bulgaria's Corporate Commercial Bank, told Dnevnik daily.

His statement came in response to suspicions that he is linked to one of the two bidders for the state-owned cigarette-making giant, registered in Austria - CB Family Office Services and BT Invest.

"If you think I have anything to do with BT Invest, let me tell you I have no idea who stands behind them," the banker added.

At the beginning of May Vassilev told Pari daily that he can't rule out considering participation in Bulgartabac privatization, but added first he had to carefully review the procedure.

Corporate Commercial Bank currently holds a 8.11% in Bulgartabac. The bank, which is believed to finance the media group of mogul Irena Krasteva, holds nearly half of the money of strategic state-owned companies.

Asked whether he intends to sell his stake, Vassilev replied he has first to see who the buyer of the state-owned stake will be and then decide what to do.

Earlier this week it emerged that only three companies will submit binding bids for the privatization of Bulgartabac Holding and only one of them is a strategic investor – British American Tobacco.

In addition to BAT, only two companies registered in Austria – CB Family Office Services and BT Invest – remained to bid for the purchase of a majority stake in Bulgartabac out of ten companies, which had declared initially their interest.

BT Invest is an Austrian investment fund, while CB Family Office Service is a consultancy based in Graz, Austria.

In an interview for the Standard newspaper the Executive Director of the Agency for Privatization and Post Privatization Control (APSK) Emil Karanikolov says that CB Family Office Service is wholly owned by the Austrian Capital Bank (Capital Bank - Oesterreich), part of Grawe. In Bulgaria it is represented by the insurance company of the same name.

Meanwhile Trud daily reported that the other bidder - BT Invest - was registered on April 14 this year and is associated with a Cyprus investment holding company and the second largest Russian bank VTB. The company General Manager Johannes Pepelnik refused to say who stands behind the potential buyer, the daily reported.

The agency for privatization control has also declined to disclose further information about the two bidders, saying that only two offers have been opened so far.

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Tags: Irena Krasteva, King, financial investors, Philip Morris, KT&G, КТ&G, Korea, stock exchange, Bulgaria, Bulgaria, Bulgartabac, Bulgartabac Holding, cigarette-maker, cigarettes, privatization, Citigroup, Citigroup Global Markets Ltd., Economy Ministry, JT International, JTI, Japan, tobacco, international, Czech, British investment funds, strategic, binding offers, cigarette producer, King's Tobacco, sofia, Tsvetan Vassilev, Corporate Commercial Bank, Bulgaria, Bulgarian, British American Tobacco, CB Family Office Service, BT Invest

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