The Bulgarian Telecommunications Company (Vivacom) management board has proposed converting the state’s golden share in the company into a common share and delisting the telco from the stock exchange.
Sofia-based Vivacom has invited shareholders to an…
The Bulgarian Telecommunications Company (Vivacom) management board has proposed converting the state’s golden share in the company into a common share and delisting the telco from the stock exchange.
Sofia-based Vivacom has invited shareholders to an EGM on 16 September to approve the management board’s proposals. The first item on the agenda is the cancellation of the special rights attached to the state’s preferential share, which enables it to veto certain decisions.
The board also proposes delisting Vivacom from the Bulgarian Stock Exchange.
Viva Telecom Bulgaria, owned by affiliates of Bulgaria’s Corporate Commercial Bank and Russia’s VTB Bank, currently holds all Vivacom ordinary shares.
In November 2012, Viva Telecom Bulgaria agreed to pay €130m (US$165m) for a 93.99% stake in the Bulgarian telco. The restructuring agreement with creditors also saw Viva pay off debts of about €588m, reduced from €1.7bn.
This January, Viva launched a tender to take full control of the company, offering Lv2.80 (US$1.92) per share for the 5.9% interest it did not already own. Viva announced the successful completion of the purchase of all outstanding ordinary shares in late July.
According to a report in local newspaper Standart News, deputy communications minister Georgi Todorov has asked for a detailed analysis of Vivacom’s privatisation. The state’s decision on what to do with its preferential share will be based upon this information, the ministry was quoted as saying.
