Russia VTB targets at a major stake in Bulgaria Telecoms firm
In its joint bid with Bulgaria’s Corporate Commercial Bank, VTB has planned to participate only as an investor and not interested in taking it over wholly. On 1st march, head of VTB Capital’s international business, Atanas Bostandjiev announced that VTB Capital, owned by VTB Bank of Russia, which is the investment arm of Russia’s second-biggest lender, has shown its interest in buying a stake in Bulgaria Telecom operator Vivacom. As it is considered that Vivacom is running into debt and Morgan Stanley, in support, is arranging a restructuring deal for them by placing a joint bid with its alliance Bulgaria’s Corporate Commercial Bank. Atanas Bostandjiev declared that they have placed their preliminary offer to deal as a financial investor and are actively following the process. Although, the process is bit complicated, but he believes that there should be some improvement in the coming month. Meanwhile, Turkcell which is the biggest mobile phone company of Turkey was initially interested in Vivacom has decided to stay out of it as of now.
Atanas Bostandjiev also clear that the VTB Capital’s plan is to only participate as an investor but not interested in managing and running Vivacom wholly. And, when asked about the kind of stake they are looking for, he confirmed that VTB Capital and Corporate Commercial Bank are interested in some majority stake or at least managing stake with blocking minority rights and nothing lesser than that. Vivacom is a well known trade name of the Bulgarian Telecommunication (BTC) which is controlled by the PineBridge Investments of Hong Kong telecom and media tycoon Richard Li. Before the PineBridge was named, it was earlier owned by an asset management arm of insurer AIG.
When Vivacom was clamped with a 1.65 billion Euro loan after it was bought by AIG in 2007. Some major banks like Royal Bank of Scotland, Deutsche Bank, UBS and Bank of Austria and some others came forward with their support and arranged the debt for Vivacom. That too even did not work so fruitful and Vivacom remained running into more debt. And due to discontinued operations, Vivacom’s revenue declined from fixed services and lower retail prices and profit also dropped to 8.4 million levels from 115.7 million. Get loan at your footstep just apply at doorstep loans @ http://www.doortodoorsteploan.co.uk/ and get quick money you needed.
According to the Bulgarian Capital newspaper, Icelandic billionaire Thor Bjorgolfsson, who sold his call option in Bulgarian Telecommunication (BTC) to AIG in 2007 for 1.08 billion Euros and an investment fund Pamplona Capital Management, were also interested in Vivacom deal. Since creditors of Vivacom are trying to find the ways of restructuring its huge amount of debt, they are offered with mobile and fixed line telephony, as well as internet and TV series services by telecom operators for about 2.2 million customers in the Balkan Country.
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