Sour grapes won't help Mr Parvanov, Mr Stanishev! Boyko will have to expend all his political capital on making difficult decisions, so in the fullness of time, the pendulum is sure to swing back the other way :-).
Also, consider: population decline (60,000 per year), the migration rate (which might increase/reverse), GDP growth (which might be low for years), the relationship between rental yields and prices, building quality and affordability (considering average salaries in Bg).
Set against the above might be the finite lifetime of many buildings, a potential recovery of strong GDP growth and inward migration (should the government decide to encourage it, i.e. from former Soviet states to the East).
If they didn't want money, they wouldn't be asking!
Ermm, I thought half of the Turks fled to Northern Cyprus in the 1980's, the Jews decided Israel was a safer place to live after WWII and many of the Roma have gone to France. I would hardly describe that as a "peaceful melting pot", more like subtle xenophobia ;-).
Ummm, if people can fill in their ethnicity themselves, I'm sure there will turn out to be a lot of "aliens" living in Bulgaria ;-).
A well written article, but some assertions in it simply don't make sense. For example, if the government only owns 43.6% of the share capital today, why is it that the majority of the board are government appointed and presumably therefore in control of the entity? In this case, surely the key argument that you make above about the pre-existing shareholders being diluted is a mistake on their part pertaining to the past, and not about the present or the future? (why did they take a stake in a government *controlled* entity?)
Also, assuming that the government wishes to realise it's stake in the bourse, prospective investors in an IPO will need to be assured that a) they trust the management, can vote to change the management and that the government wil nolonger be in control, and b) that there is a reasonable chance that the shares they purchase will start trading at a premium. It therefore seems entirely reasonable to me that the pre-existing government controlled board would accept a valuation at below 'book' value.
You mention the amount of 'cash' on the books, but a large part of that may be in 'intangibles', not easily realised? Those facts are perhaps unknown? It is possible that the bourse does actually need cash at this point, but this is perhaps unknown.
Finally, the price of a security usually comes to reflect it's value, at some point in time and it is possible that the actions that the government are taking will actually resolve the issue of 'control' and potentially enhance the value of the shares, considerably? Ultimately, that might not be a bad thing for pre-existing shareholders, should they choose to remain invested?
GDP per capita is not the true story. Who in Bg earns close to $12,000 per year? Not many! Turkey has a much higher GINI index, showing that despite a similar GDP per capita, income distribution is much more equal. This means that the average Turk is in fact much better off than the average Bulgarian! Or, in other words, the elite in Bg are very rich and the general populus are quite poor.
Sounds like Boyko was set-up over this one! Slimey socialists ;-)
"an increase of the share of debt denominated in euro which according to it minimizes currency risks"
So, if the Lev is ever de-pegged from the Euro and the Lev depreciates, this Euro denominated debt will be cheaper to service? I don't think so!
Perhaps they are assuming that if the Lev is ever de-pegged, it will appreciate against the Euro. Anything is possible, I suppose :-)
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