Bulgaria's Real Estate Sofia plans to buy RS City Sport

Real Estate Sofia plans to buy all of the shares of RS City Sport from its four shareholders - Adara, Besatur, Zagora Fininvest and Chernomorski Holding, it said in a stock exchange filing.

RS City Sport's assets totalled 48.2 million levs as of the end of June, according to its latest unaudited financial report.

The acquisition will improve Real Estate Sofia's return on equity and grow its assets on an individual and consolidated basis, which will have a positive effect on the company's financial results, it said.

The proposal will be put to the vote at an extraordinary general meeting of shareholders of Real Estate Sofia REIT scheduled on November 20. If approved, the deal is expected to be concluded by the end of this year.

Earlier this month, Real Estate Sofia said it acquired local peer Kabakum Estates for 1.7 million levs.

Shares in Real Estate Sofia last traded at 7.90 levs on the BaSE market of the Bulgarian Stock Exchange, bourse data show.

(1 euro = 1.95583 levs)