Bulgaria Cuts Price for Construction Co Technoexportstroy to Lure BuyersBusiness | April 24, 2012, Tuesday // 11:24| views
Bulgaria's Technoexportstroy has completed over 650 prestigious projects as main contractor. Photo by Technoexportstroy
Less than a month after the auction of Bulgaria's state-owned construction company Technoexportstroy failed to draw any bidders, the country will make a new attempt to sell it by cutting the price.
The Privatisation Agency announced it will hold an open auction to sell 100% of Technoexportstroy with a starting price of BGN 60 M, down by BGN 8 M.
The open auction to sell construction company Technoexportstroy, scheduled for May 2, was cancelled at the beginning of April due to lack of bidders.
Three companies purchased documents for participation in the auction, but none of them delivered bids.
The companies, which were hoped to turn into prospective investors, were Greek builder Ellaktor SA, registered in Athens, the Bulgarian firms Advance Properties OOD and AT Engineering 2000, both registered in Sofia.
The auction price was supposed to start at BGN 68 M, which according to experts from the construction sector, hit hard by the crisis, was far above the market price.
Analysts have also attributed the lack of interest to the fact that the company has experience mainly in Arab countries, where doing business now is a difficult and hazardous task, given the political turmoil.
Bulgaria decided to put up for sale 103 970 shares, representing 100% of the capital Technoexportstroy EAD, Sofia, in February, 2012.
The sale body expected the sale to be one of the major deals during the term of the center-right cabinet of Boyko Borisov, second only to privatization of cigarette maker Bulgartabac, which was sealed in the autumn last year.
Technoexportstroy EAD is a state-run design, engineering and construction company. It was established in 1964 and is registered as first class international contractor and consultant in more than 20 countries in Europe, the Middle East, Africa, as well as with international financial and investment institutions such as the World Bank and the Arab Fund.
Technoexportstroy has completed over 650 prestigious projects as main contractor.
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