EVN Unit in Bulgaria Gets Ok to Become Public CoEnergy | December 7, 2011, Wednesday // 16:33| views
EVN unit in Bulgaria includes two companies in charge of sales and grid operation. Photo by BGNES
Bulgaria's financial regulator has greenlighted the listing of the government's 33% minority stake in the local unit of Austria's EVN AG on the local stock exchange.
The two companies included in the unit, which are in charge of sales and grid operation, will be listed as public companies, the Financial Supervision Commission decided, confirming expectations that their initial public offerings (IPOs) will be launched at the end of the year.
The 33% stakes in Electrosnabdiavane and Electrorazpredelenie have been tagged at BGN 1.882 M and BGN 1.564 M respectively, the commission said. The nominal value is BGN 10 per share.
Bulbrokers, a local financial and investment company, was picked in the middle of June to broker Bulgaria's 33% stake sale in Austria's EVN AG unit.
Experts have repeatedly called on the government to launch high-quality initial public offerings to bring back to life the capital market, dented now by low liquidity and lack of quality stock, and to boost revenues. That's why the sale of the minority stakes in the electricity distributors on the stock exchange was a must-do task for 2011.
In 2004, the Balkan country sold 67% in its three power distributors to Germany's E.ON, Austria's EVN and Czech CEZ.
E.ON serves households in North-Eastern Bulgaria, including the Black Sea city of Varna. Czech power utility CEZ supplies power to over 2 million households and companies in western Bulgaria, while EVN serves the south-eastern parts of the country.
At the beginning of December German electric energy company E.ON struck a deal to sell its Bulgarian unit E.ON Bulgaria to private Czech company Energo Pro.
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