Bulgaria's Govt Plans To Speed up Sale of Former Tobacco Monopoly

The Socialist-led coalition cabinet, which faces elections next year, will also propose to lawmakers to scrap the current strategy for the privatisation of the tobacco group which calls for the selection of a strategic investor, the government said in a statement.  

The strategy, adopted in 2003, is no longer relevant and the requirements for strategic investors are no longer applicable, it said. Under the privatisation strategy the group restructured its operations and sold some of its loss-making units, including two cigarette factories. At present, Bulgartabac’s most attractive assets are two cigarette factories and a tobacco processing factory.

Bulgartabac, whose sale has been delayed for years due to political wrangling, started to rapidly lose market share to international majors after Bulgaria joined the EU in 2007. At present it holds a market share of around 60% in Bulgaria.

Shares in Bulgartabac last traded on December 3, when they closed at 12 levs ($7.98/6.14 euro), down 20% from the previous close on December 1.

The government owns 79.83% of Bulgartabac Holding.

(1 euro = 1.95583 Bulgarian levs)