Bulgaria to kick off tender for stakes in 31 firms on Dec 14

Bulgaria hopes to collect the proceeds from the first major privatisation carried out during centre-right party GERB's government by the end of the year. The public auction for the state stakes in 31 companies will run between December 14 to 27 on the bourse in Sofia, according to a statement of the Bulgarian Stock Exchange (BSE). If the tender proves successful and the country manages to sell the companies even at the minimum offered price, the country will raise a total BGN 78.88 million in cash. The funds secured through the auction will go straight to the state coffers, with the bulk of the sum to be transferred to the State Consolidation Company (SCC), an entity formed as part of the country's anti-crisis programme. Currently, SCS incorporates one of the most alluring assets slated for privatisation, building firm Montazhi, which will be offered at a price of BGN 70 million. If SCC collects the funds from Montazhi's privatisation by the end of the current year, it will be able to distribute a dividend at the beginning of 2011, which will be transferred into the state budget. Proceeds from the sales of the remaining assets should be added to the Silver Fund, a structure set up to compensate for the extra costs of ageing.(Dnevnik)