The state is threatening legal action against Viva Ventures, which acquired a majority stake in incumbent Vivacom, for failing to meet payment obligations, according to local media reports In 2004, Viva Ventures, a consortium led by London-based private…
The state is threatening legal action against Viva Ventures, which acquired a majority stake in incumbent Vivacom, for failing to meet payment obligations, according to local media reports In 2004, Viva Ventures, a consortium led by London-based private equity firm Advent International, paid E230m for 65% of the telecoms incumbent, then called BTC, and E50m for a third mobile licence. As part of the transaction, the defence ministry was to receive Lv18m (US$13m) over two years under a classified agreement for the maintenance of secret defence communications spots and military equipment.
The defence ministry has reportedly never received any payment and the executive director of the agency of postprivatisation control, Emil Karanikolov, was quoted saying that the company had 30 days to pay what it owes or face legal action.
The government listed its 35% stake on the Bulgarian stock exchange in February 2005 and in 2006, Novator, the private equity firm owned by Icelandic businessman Thor Bjorgolfsson, acquired an option to buy Viva Ventures’ stake. Novator sold the stake to AIG Investment for E1.08bn in May 2007 and in August the buyer increased its shareholding to 90%.
