7 Investors Interested in Freight Unit of Bulgarian State RailwaysBusiness | December 26, 2012, Wednesday // 16:19| views
The privatization of BDZ's profit making unit, Freight Services, is to secure money to cover huge debts of the company and help revive its other unit, Passenger Services. Photo by Sofia Photo Agency
Seven investors have shown interest in the privatization of the cargo unit of Bulgarian State Railways (BDZ) company, according to Emil Karanikolov, Executive Director of the Privatization and Post-Privatization Control Agency (PPCA).
Karanikolov, as cited by Standard daily, informed Wednesday that six investors had already purchased tender documents, including Sofia-based consultancy Yurista EOOD, Georgieva, Todorov & Co Law Office, lawyer Valentin Tsenov Ivanov, Grigorov & Assoc. Law Office, lawyer Todor Ivanov Angelov, and private railway freight carrier Bulgarian Railway Company (BRC), owned by Romania's largest private railway company, Grup Feroviar Roman (GFR).
The PPCA Executive Director noted that the seventh investor, who was also represented by a lawyer, had requested an extension of the bid submission deadline, saying that the Christmas holidays had obstructed the preparation of documents.
Except for BRC, all other bidders for the privatization of BDZ Freight Services are represented by consultancies and law offices.
The seventh investor is said to be the Russian State Railways (RZD).
Russian business daily Kommersant wrote Tuesday that the company was interested in setting foot on the European market of freight railway services.
The press office of Russia's state-owned railway operator refused to comment on the matter.
In mid-November, Bulgaria's Privatization Agency launched a second privatization procedure for BDZ's Freight Services, after the first one fell through.
The second attempt to sell the cargo unit of BDZ will only include strategic and financial investors.
The privatization of BDZ's profit making unit, Freight Services, is to secure money to cover huge debts of the company and help revive its other unit, Passenger Services.
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