Bulgaria Consolidates Five Energy Companies into Holding
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Bulgaria's government decided to set up an energy holding that will be composed of gas company Bulgargaz, power grid operator NEK, Kozloduy nuclear power plant, Maritza-Iztok II thermal power plant, and the Mini Maritza Iztok (Maritza Iztok mines).
The consolidation of the five companies into the Bulgarian energy holding, one of the biggest energy companies in the region, is expected to be completed by the end of 2008. The assets of the holding will amount to EUR 4 B, its forecast annual profit is set at EUR 1,8 B.
The state will hold a 100% stake in the energy holding. The Energy and Economy Ministry will hold up to 75% stake in each of the five energy companies, while the minority shares, varying from 25% to 49% will be transferred to the newly established company.
The consolidation of the energy sector aims to restructure the corportate management and supervision of the companies included in the holding, prepare them for listing on local and international stock exchanges, boost their investment potential and improve their credit ratings.
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The consolidation of the five companies into the Bulgarian energy holding, one of the biggest energy companies in the region, is expected to be completed by the end of 2008. The assets of the holding will amount to EUR 4 B, its forecast annual profit is set at EUR 1,8 B.
The state will hold a 100% stake in the energy holding. The Energy and Economy Ministry will hold up to 75% stake in each of the five energy companies, while the minority shares, varying from 25% to 49% will be transferred to the newly established company.
The consolidation of the energy sector aims to restructure the corportate management and supervision of the companies included in the holding, prepare them for listing on local and international stock exchanges, boost their investment potential and improve their credit ratings.
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#1
CJB - 13 Feb 2008 // 17:04:56
"The consolidation of the energy sector aims to restructure the corportate management and supervision of the companies included in the holding, prepare them for listing on local and international stock exchanges, boost their investment potential and improve their credit ratings."
That should read: designed to rack up more collateral to set against the massive debts being forced onto NEK in order to finance Belene, while simultaneously trying to pay for the upgrade to the decayed electricity transmission network.
Or, put another way, the government is like a gambler in a casino playing roulette: all chips have been moved onto red!
