Bulgarian state construction company Technoexportstroy was privatized Wednesday against BGN 51 M given by Bulgarian firm AT Engineering 2000.
AT Engineering was the sole bidder in the privatization tender, and acquired 100% of the company's 103,970 shares.
This is the biggest yet privatization deal in Bulgaria for 2012, but came to be finalized only after the third try.
At the first listing of Technoexportstroy, Bulgaria's Privatization Agency had set a BGN 68 M minimum limit, dropping to BGN 60 M at the second, and then dropping off at the third.
The privatization contract obliges the buyer to keep the principal field of operation of the company unchanged for the next 3 years.
The buyer is also obliged to not initiate or support a liquidation or transformation of the company for the same period.
AT Engineering 2000 engages in construction and repair of industrial, administrative and residential buildings.
Its last major project involves taking part in building composting facilities at the future Sofia recycling plant, as a part of the Eggersmann & Co. consortium.
The company has received a significant drop of income from BGN 78 M in 2009 to BGN 16 M in 2011, which has resulted in some 120 employees being laid off.
Technoexportstroy's financial situation is not good either, with a small profit of BGN 119,000, but also uncovered losses of BGN 175 M, given a capital of BGN 82.6 M and blocked bank accounts.
The company is however known to own attractive real estate and facilities, as well as a network of units abroad.
Article courtesy of www.novinite.com
Image courtesy of: http://www.freedigitalphotos.net image by 'Stuart Miles'
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