Creditors of Vivacom, also known as Bulgarian Telecommunications Company (BTC) have reportedly rejected all bids for the company and are not expected to attempt another sale for at least a year.
BTC creditors considered all three bids for the former…
Creditors of Vivacom, also known as Bulgarian Telecommunications Company (BTC) have reportedly rejected all bids for the company and are not expected to attempt another sale for at least a year.
BTC creditors considered all three bids for the former state-owned monopoly too weak, Bulgarian daily The Capital wrote according to the Balkans.com website.
The report stated, with reference to three unnamed sources, that Turkish mobile operator Turkcell made the best offer, although it contained conditions stating a significant portion of the purchase price would not be paid until the Bulgarian state’s dispute with BTC’s previous buyers is resolved.
Turkcell said it had not been informed of the decision at this point.
“According to news in the media, we understand that our bid for the acquisition of a 93.99% stake in Bulgarian telecom operator, Bulgarian Telecommunications Company AD (Vivacom), based on our Board of Directors’ decision, has not been accepted,” the company stated. “However, our company has not received any formal notification in this matter.”
According to the report, bids from a consortium consisting of Russia’s VTB Capital and Bulgaria’s Corporate Commercial Bank and Icelandic businessman Thor Bjorgolfsson were also considered unsatisfactory. No mention was made of another reported bidder, London-based private equity firm Pamplona Capital Management.
BTC’s creditors are not seen as likely to reattempt to sell the company until it has significantly reduced its debt, which is likely to take at least a year or two.
Turkcell announced in March that it would bid for a 93.99% in BTC. At the time, a spokesperson declined to comment on how much the company would offer, although he dismissed the US$1.4bn figure quoted in earlier media reports as “groundless”.
Sofia-based news site Novinite.com, which also cited The Capital report, said the collapsed sale talks will force BTC creditors to explore restructuring options for the company, said to have substantial debt.
BTC’s creditors mandated Morgan Stanley last year to help sell the company after it breached loan conditions.
