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SOFIA (Bulgaria), February 28 (SeeNews) - German-led consortium KG Maritime Shipping, the sole bidder for 70% of state-owned Bulgarian maritime shipping company Navibulgar, has offered to pay a combined 1.22 billion levs ($941.7 million/624.1 million euro) in acquisition price for the stake and future investments, the government's Privatisation Agency said on Thursday.
"The combined financial offer for 70% and investments is 1.22 billion levs," the head of the asset-selling agency Todor Nikolov told a news conference after the offer was opened.
The consortium has offered to pay 440.1 million levs out of the total to acquire the majority stake in Navibulgar.
“The price, which is offered in the final bid, is above the expected one,” Nikolov said, adding Privatisation Agency estimates had put the price of 100% of Navibulgar’s capital at around 600 million levs.
Bulgarian-based consortium KG Maritime Shipping, 70%-owned by German KG Maritime Partners, was shortlisted as the sole candidate to proceed in the tender for the 70% stake in Navibulgar last October. The other two candidates - Indian high-growth infrastructure sector developer Essar Shipping & Logistics and Greek ship management firm Chartworld Shipping Corporation, failed to qualify because they did not meet the tender requirements.
Under the privatisation strategy the government has an option to offer the remaining 30% of Navibulgar to the buyer of the majority stake no earlier than five years after the sale of the majority stake. The price per share in the sale of the 30% stake should not be lower than the share price achieved in the sale of the majority stake.
KG Maritime Shipping has offered to invest 779.88 million levs in Navibulgar over 10 years after it acquires 70% of the company.
“This investment itself will increase the value of Navibulgar, and, respectively, of the state’s remaining 30%,” Nikolov said.
Navibulgar, one of the key state-owned assets, owns some 70 ships, most of which are over 20 years old. The fleet has a combined capacity of some 1.4 million deadweight tonnes, which positions Navibulgar among the largest cargo operators in the Black Sea and the Eastern Mediterranean.
Nikolov added that the offered investment is high enough to help bring the average age of Navibulgar’s fleet below 10 years.
Now it's up to the government to decide whether to sell 70% of Navibulgar to KG Maritime Shipping.
(1 euro = 1.95583 Bulgarian levs)
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