Emil Karanikolov, the chief of Bulgaria’s Agency for Privatization stated that the deal soon will be finalized. “We can’t declare that the main thing in this privatization deal will be the price. I suppose that Bulgartabac would have been privatized a long time ago,” Karanikolov stated. Karanikolov also added that the government is planning to include clauses for a deadline and volume of purchasing Bulgarian tobacco.

Bulgaria’s state cigarette producer Bulgartabac Holding, which soon will be privatized; finished the 2010 with a net earning of BGN 20 M. Bulgartabac’s 2010 return was 16.5 times larger than in 2009. The total income from tobacco products increased 22% year-on-year. In 2010, 80% of the Bulgartabac Holding was exported, in comparison to 53% in 2009, and only 31% in 2008. In addition to its growing exports, the Bulgartabac Holding Group holds 37% of the Bulgarian local tobacco market. 3.5% of Bulgartabac’s revenue for 2010 came from the sales of tobacco leaves.

The Bulgartabac Holding Group owns two cigarette plants- Blagoevgrad-BT and Sofia BT and one tobacco processing plant Pleven-BT. A great number of strategic and financial investors demonstrated their interest in the privatization of Bulgaria’s state cigarette manufacturer Bulgartabac Holding, according to Economy Minister Traicho Traikov. According to unofficial information companies from Bulgaria, Greece, and South Korea want to purchase Bulgartabac. It is a quite attractive asset even in time of crisis.

Bulgartabac, whose government administration has been doubtful in the recent years, is brought forward for privatization after its privatization has been postponed for years. The two not so profitable tobacco plants of Bulgartabac holding in the cities of Plovdiv and Stara Zagora were sold in 2009 for BGN 31 M and BGN 18 M respectively

Bulgaria’s Economy Minister Traicho Traikov has guaranteed that an important investor is planning the privatization of the state-owned cigarette company Bulgartabac. “There is an important investor for Bulgartabac and the price offering will be opened by the end of the autumn,” Traikov said at the press conference. Bulgaria’s Privatization Agency expects to finish the sale of state-owned cigarette company Bulgartabac in 2010.

At present Bulgartabac Holding own two cigarette factories in comparison with nine in 2004 and its market share has increased to 40% from 60% a year before. The holding still has several commercial brands.

Bulgartabac sale is part of Bulgaria’s center-right government project for important investors for key majors, such as the cigarette monopoly and a few other companies in which the state hold higher than a 50% stake. The decision was taken a few months ago after the cabinet was prompted to sell on the stock exchange shares in companies, which belong to Bulgarian Energy Holding.

By Sara Norton, Staff Writer. Copyright © 2011 Cigarette-Store.org. All rights reserved.