Bitcoin managed to claw its way to a meaningful round level early in the week, trading at $20,400 on Tuesday morning (+2.8% in 24 hours)
Dubai-based Oger Telecom Takes over Bulgaria's Vivacom - Report
Dubai-based Oger Telecom will take over the management of Bulgaria's top fixed-line operator Vivacom following negotiations that have dragged on for nearly half a year, according to reports.
Oger Telecom representatives have confirmed for local Dnevnik daily that the company is a side in the lock-up agreement that the major lenders signed on the restructuring options for the debt-laden company with the mezzanine creditors, the most junior lenders in the capital structure.
Under the agreement the mezzanine subordinated non-performing loans, which total EUR 400 M, will be transformed into equity capital of a Dutch-based company, which will be a majority owner in BTC.
Oger Telecom and to a smaller extent the other new owners are expected to invest another EUR 125 M for capital expenditures and payment of debts to the banks.
In exchange the telecom will become a minority shareholder and will keep its role in the management of the company.
Oger Telecom is expected to enter Vivacom as a strategic investor and bring about structural changes within three to four months.
The report comes a month after information surfaced that Chinese telecoms and media tycoon Richard Li is considering a deal with Oger Telecom as he tries to retain control of Vivacom -known as Bulgarian Telecommunications Company (BTC) until last year, when its fixed-line and mobile phone units were merged.
Li and Oger have been in a battle over Vivacom for the last few months after it was put for sale by US insurance giant AIG.
Chinese billionaire Richard Li, who controls Bulgaria's Vivacom, was ready to invest in the latter in a bid to restructure its debt. PCCW and its chairman's privately-owned equity fund PineBridge were considering investing USD 230 M (EUR 180 M) to rescue the telecom.
Pinebridge owns directly a 13% stake in Vivacom but is the telecom's controlling shareholder as the lead partner in a consortium of investors.
Reports that Li was going to invest in Vivacom, heir to the State-owned Bulgarian Telecommunications Company (BTC) – first transpired at the beginning of July.
Li, chairman of Asian telco PCCW, inherited control of Vivacom in March as part of the acquisition of AIG Investments, a unit of the troubled US insurance group which spans asset management and private equity investments. The unit was renamed Pinebridge Investments ahead of the takeover by Li's Pacific Century group.
US insurance giant AIG bought 90% of the company's shares in August 2007 for EUR 1,4 B, later launching an offer to buy out the remaining shares.
Vivacom dominates the fixed-line segment with 2.9 million phone lines, which accounts for 97% of the market, but it has been losing customers at an alarming rate in recent years, due to the spread of mobile communications and alternative telecoms in the country.
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