Bulgaria to float up to 15 pct in energy companies

Tue Nov 10, 2009 2:13pm GMT
 
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* Sofia to list 10-15 pct in dominant power, gas companies

* Floating to improve transparency, cut corrupt practices

SOFIA, Nov 10 (Reuters) - Bulgaria will float minority stakes in major energy companies next year to enliven the local stock exchange and boost the companies' transparency, Economy and Energy Minister Traicho Traikov said on Tuesday.

The centre-right government, which took office in July, will offer between 10 to 15 percent of the energy group Bulgarian Energy Holding (BEH) and its units, dominant electricity utility NEK and the gas monopoly Bulgargas.

A minority stake in Bulgartransgas, the gas pipeline operator which is also part of BEH, and its telecommunication unit, Bulgartel, will also be floated at the Sofia bourse, Traikov told a news conference.

"The process, if we launch it before Christmas, might take place in the first quarter of next year. But it is not certain we will be ready by then," he said, adding the exact list of companies was not yet finalised.

BEH also includes Bulgaria's largest coal mine Maritsa East, its biggest thermal power plant Maritsa East Two and its sole nuclear power plant Kozloduy.

Going public will force the state companies to improve their management and tackle graft, Traikov has said. The flotation will also attract foreign investors to the emerging economy and its low-liquid bourse.  Continued...

 

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