The Corporate Bank informs BSE-Sofia that it will acquire less than 10% of BTC

The Corporate Commercial Bank (CCB) plans to acquire less than 10% of the Bulgarian Telecommunication Company (BTC) which operates under the trade name Vivacom. That was announced by the bank in a letter to the Bulgarian Stock Exchange (BSE-Sofia). CCB also specified that together with Russian VTB Capital PLC it signed an agreement with the creditors of BTC, BTC itself and the group of its parent company to set the main terms and conditions of the future sale and restructuring of BTC's Group. The deal is expected to be completed in September 2012 after the plan for the restructuring of the heavily indebted telecommunication company is approved by the court and the respective regulatory bodies.

The agreement itself includes a number of terms: for example, it was publicly announced that the financial duo will receive a majority share in BTC in exchange for a €130 mln cash payment and will cover €588 mln of the current debt totalling €1.65 bn. Under some of the terms, the remaining debt will be bought by investors, specified by the new majority owner. Thus, the Russian-Bulgarian team managed to acquire the telecommunication company, for which Turkish mobile operator Turkcell, the third biggest mobile operator in Europe, made a bid earlier in the year but its offer was rejected by the then manager of the sale, the London office of Morgan Stanley investment bank.

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