Russia's VTB Bank Behind Bulgartabac Bidder BT Invest

Bulgartabac holding currently owns two larger and more consolidated factories in Sofia and Blagoevgrad as well as a number of commercial brands. Photo by Sofia Photo Agency

Russia's second-biggest bank VTB stands behind one of the two Austria-registered bidders for Bulgaria's state-owned tobacco giant Bulgartabac, officials said on Friday.

"VTB Bank is the financial institution behind the company BT Invest, which is one of the bidders for Bulgartabac," the Agency for Privatization and Post Privatization Control (APSK) announced on Friday, confirming media reports, which have been circulating over the last few days.

Earlier this week it emerged that only three companies will submit binding bids for the privatization of Bulgartabac Holding and only one of them is a strategic investor – British American Tobacco.

The other two companies are registered in Austria – CB Family Office Service and BT Invest. BT Invest is an Austrian investment fund, while CB Family Office Service is a consultancy based in Graz, Austria.

Meanwhile the head of Bulgaria's Corporate Commercial Bank, which is believed to finance the media group of mogul Irena Krasteva, has denied he is interested in the privatization of the country's state tobacco giant Bulgartabac Holding.

His statement came in response to suspicions that he is linked to one of the two bidders for the state-owned cigarette-making giant, registered in Austria - CB Family Office Services and BT Invest.

Corporate Commercial Bank currently holds a 8.11% in Bulgartabac. The bank, which is believed to finance the media group of mogul Irena Krasteva, holds nearly half of the money of strategic state-owned companies.

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