SOFIA (Bulgaria), March 30 (SeeNews) – The Bulgarian competition regulator said on Monday it has launched a preliminary probe prompted by media reports that a newly-registered foreign company, LIC33, is acquiring stakes in companies operating in different sectors of the economy.
Last week LIC33, which describes itself as a group of companies bringing together European Union investors, said it has acquired for 1 euro the stakes of controversial local businessman Tsvetan Vasilev in telco BTC, ammunition maker Dunarit, aircraft repair company Avionams, TV services providers NURTS and First Digital and audience research company Garb against a commitment to repay the companies' debts, estimated at 900 million euro ($977.7 million). The deal involved 43% of BTC, 91% of Dunarit and as much of Avionams, and 100% of NURTS, First Digital and Garb.
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The Commission for Protection of Competition (CPC) has requested from the companies involved in the deal, as well as from two others - broadcaster TV7 and hotel operator Sana Space Hotel Hisaria - to provide it with information regarding a possible change in ownership, the Commission for Protection of Competition (CPC) said in a statement.
The probe aims to determine the stage that the deal has reached. If the commission establishes that there has been a transfer of stakes or self-contained businesses without it being notified by the concerned parties, it may impose fines of up to 10% of the defaulting companies' turnover, it added.
In a separate development, the CPC is conducting a check into BTC's plans to acquire full control over NURTS Bulgaria.
In February, the CPC referred to the European Commission a case for a possible concentration through the acquisition of control of Bulgarian telecommunications group BTC after being notified by local company TC-IME about a possible concentration through the acquisition of control over BTC following the transfer of stakes from Bromak Telekom Invest to Luxembourgh-based SHCO, about which TC-IME had not been informed though it holds the biggest stake in BTC.
On Tuesday, LIC33 chairman Pierre Louvrier told a news conference that he is the sole shareholder in the group and that his team has invested their own money in the deal. LIC33 has opened talks with creditors and plans to restructure and refinance the companies once they have been stabilised, Louvrier also said, adding that the group will seek partnership with international banks.
Later in the day, the Bulgarian government issued a statement, asking LIC33 to come up with official information about the source of financing of the deal.
“The Bulgarian Government is closely monitoring all major acquisitions of assets, which are thought to be linked to Corpbank and the accused Tsvetan Vasilev,” the statement read. “We insist on this in order to guarantee that investments in a European Union member state are realized only with funds acquired with the proceeds of legitimate business.”
Vasilev, the majority owner of bankrupt Corporate Commercial Bank (Corpbank), has been charged with embezzlement and is awaiting a Serbian court ruling on Bulgaria's request for his extradition from Belgrade.
Local media reported over the weekend that the National Revenues Agency has issued an injunction on transactions with the assets held by Vasilev in the six companies.
In June, Bulgaria's central bank placed Corpbank, the country's fourth largest lender at the time, under special supervision over risk of insolvency and appointed conservators at the bank. In November, the central bank delicensed Corpbank and said it would seek the bank's insolvency after it was found to have a negative own capital. In December the Bulgarian Deposit Insurance Funde started repayments on guaranteed deposits of up to 100,000 euro at Corpbank.
($=0.9206 euro)