The Bulgarian government will today try to take control of the country’s only stock exchange, which according to an insider at the exchange will lead to a reprivatisation, probably by selling a stake to a strategic investor such as an international exchange group.
At an extraordinary general meeting today, shareholders will be asked to vote on a capital increase to which only the government can subscribe. They will consider a resolution to issue 715,000 new shares to the Ministry of Finance, which will pay Lev1 a share, a total of Lev715,000 (€366,000).
If the transaction is approved – for which the government needs a majority of 50% plus one share – it will increase the exchange’s capital from Lev5.87m to Lev6.68m. Crucially, it will raise the ministry’s stake from 43.97% to about 51%, wresting control from the other shareholders....