A group of EU investors known as LIC33 has reportedly acquired a majority stake in the Bulgarian Telecommunications Company (Vivacom).
LIC33, which focuses on emerging markets and turnaround situations, acquired the stake in exchange for a commitment to…
A group of EU investors known as LIC33 has reportedly acquired a majority stake in the Bulgarian Telecommunications Company (Vivacom).
LIC33, which focuses on emerging markets and turnaround situations, acquired the stake in exchange for a commitment to refinance Vivacom’s entire bank debt, estimated at about €900m, according to a Bulgarian News Agency report citing a statement from the group.
While the deal still requires regulatory approvals, LIC33, reportedly chaired by private equity investor Pierre Louvrier, has already kick-started refinancing and restructuring efforts, the report stated.
A Vivacom spokesperson said the company is not aware of any transaction, either existing or pending, which could “lead to change of control as defined in the indenture”. He declined to comment further.
LIC33 could not be reached for comment.
In November 2012, Bulgaria’s Corporate Commercial Bank (CCB) and Russia’s VTB Capital paid €130m to acquire a 93.99% stake in Vivacom from creditors via holding company Viva Telecom Bulgaria. A restructuring agreement with creditors saw the telco’s debt drop from €1.7bn to about €588m.
In 2013, Viva successfully completed a takeover bid for the remaining shares, with the Bulgarian government agreeing to convert its golden share into a common share. Sofia-based Vivacom was also delisted from the local stock exchange.
However, in June 2014, CCB was taken over by the Bulgarian central bank and lost its banking licence a few months later.
Earlier this year, CCB shareholder Tsvetan Vasilev told the local Banker Weekly that Vivacom had attracted the interest of a large US company and that talks were underway. He reportedly said CCB would like to extract the maximum possible value from the telco to cover its liabilities.
Vivacom posted revenues of BGN600.7m (US$327.6m) for the nine months ended 30 September 2014, down 0.8% year-on-year. The company is the largest integrated telco in Bulgaria and the third largest mobile operator after Telekom Austria’s Mtel and Telenor’s local unit.
