DRAFT BULGARIA AIR PRIVATISATION AGREEMENT RECEIVES OFFICIAL APPROVAL

DRAFT BULGARIA AIR PRIVATISATION AGREEMENT RECEIVES OFFICIAL APPROVAL
09:04 Fri 22 Dec 2006

The government approved the draft agreement for the sale of 99.99 per cent of national flag carrier Bulgaria Air.
Balkan Hemus Group is to be the new Bulgaria Air owner. The company received Cabinet approval on November 2 2006, Focus news agency reported.
The state is to maintain its influence over strategic decisions as it keeps one golden Bulgaria Air share. A golden share enables its owner veto decisions of the majority owner.
Bulgaria Air was sold for 13 million leva. According to the investment programme, Balkan will invest 82.1 million leva over the coming five years.
In the first year after the acquisition, Balkan is to offer 621 work places, which will increase in the coming years to respectively 956, 978 and 1062.
Balkan also envisions the launch of flights to 36 new destinations.
The new owner is deprived of the right to transfer shares in the coming five years. Bulgaria Air will have a board of directors, responsible for the approval of major decisions.