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South-East Europe The most comprehensive on-line focus on Greece's business interests, investments, trade relations and corporate
activities in the rapidly-developing Balkan region as well as
Turkey During his annual speech on the Greek economy at the Thessaloniki International Fair on September 9, 2005, Prime Minister Costas Karamanlis referred to recent developments of particular importance to northern Greece: the agreements signed with Russia and Bulgaria for the construction of the Burgas-Alexandroupolis oil pipeline, and for the commencement of work on the Greece-Turkey natural gas pipeline; the planned undersea pipeline to convey natural gas from Greece to Italy, and from there to the heart of Europe; and the speeding of rail links between Thessaloniki, Sofia and Istanbul.
INVbg: Invest in Bulgaria
Greece: springboard to South-East Europe "Greece's role as the economic engine of South-East Europe creates a significant multiplier effect for businesses that want to operate throughout the Balkan region and benefit from regional market access. As Greece's neighbours develop market economies, create a new generation of entrepreneurs, and generate an important consumer base, businesses based in Greece enjoy multiple advantages... The transport hubs of Athens and Thessaloniki put executives in regional offices or plants within hours. The PATHE Motorway, the Egnatia Highway, the new Athens International Airport, and Greece's shipping dynamism translate into huge logistics advantages for market penetration. The total consumer population of the Balkans and the Black Sea region is estimated at 320 million persons with a GDP of USD 2,296 billion. More than 2,500 Greek companies have invested in sectors that show favourable growth prospects and that are in need of improvement and upgrading.... Among the many areas of investment are information technology and telecommunications, banking and finance, food and beverages, energy and petroleum products, retail and wholesale trade, construction, basic metals, building materials, packaging and packaging equipment, tobacco, agriculture, and fishing. Other sectors such as tourism, logistics, healthcare, and consulting will grow hand in hand with market development... We urge you to consider Greece as a springboard to South-East Europe and discover how your business can prosper as a regional player and benefit from the multiple advantages growth markets offer." -- Hellenic Centre for Investment (ELKE), June 2005 Since December 1998, INVgr has been publishing information and business intelligence on the corporate activities, investments, expansion plans and business interests of Greek companies, investors and entrepreneurs active in South-East Europe. This English-language intelligence is only available to INVgr's subscribers. A few excerpts of the information on file can be found below. INVgr's special section on South-East Europe also focuses on Greece's trade relations with countries in the region and includes several launch pads with hyperlinks to useful English-language corporate, governmental and non-governmental Web sites and portals that will give you a head start when investing in or doing business in or with this rapidly-expanding, dynamic region of Europe. "Regional co-operation among the Balkan states becomes a major political priority, in view of the perspective of stability, development and incorporation of the South-East European countries in the EU Interbalkan co-operation initiative has been designated as a strategic decision by the Balkan states, as it constitutes an honest and feasible mechanism of regional coexistence and co-operation which can only eventuate in the improvement of political, economic and business relations." -- Adam Regouzas, Deputy Minister, Ministry of Economy and Finance, Greece Greece is the only nation in South-East Europe that is part of the euro-zone, although several countries and territories in the region already use or have adopted the euro as their currency. Partly due to its strategic location and the fact that it is currently the only EU-member country in the Balkans, Greece has become the springboard for investing and doing business in South-East Europe. "At the Thessaloniki Summit [in 2003], the European Council clearly recognised the aspirations of the countries of the Western Balkans to join our Union. We endorsed their right to join us, provided that they meet the conditions for entry. We also agreed proposals to enrich our policy with new instruments like twinning, borrowed from the Accession Countries' experience. We will also introduce this year [2004] new European Partnerships for each country, spelling out clearly priorities for action both in the short and medium term. We have not just restricted ourselves to a political strategy. We have also helped the Western Balkans in more practical ways. European tax payers are paying out a total of around EUR 5 billion over the period 2000-2006 for the Western Balkans. Germany has obviously contributed a great deal of these resources, as well as being a generous bilateral donor in its own right. In addition, we have introduced the so-called Asymmetric Trade Measures (ATMs) which have opened up our markets to goods from the Western Balkans without any reciprocal access to their markets. As they move down the road towards membership they will have to allow our producers to sell into their markets, but we allowed them to start the process on a unilateral basis." -- Christopher Patten, External Relations Commissioner, addressing the European Affairs Committee, German Bundestag, Berlin, April 28, 2004 Two countries in the region -- Bulgaria and Romania -- are determined to become full members of the European Union on January 1, 2007, while Croatia hopes to enter the EU by 2009. Furthermore, Greece officially supports Turkey's rapprochement with the EU, while Greek-Turkish relations have recently entered into a new 'orbit'. The Republic of Cyprus, meanwhile, already is a member of the EU since May 1, 2004 -- a major step forward and indeed a historic moment for the Greek-Cypriot republic that has very close ties with Greece. "If there's one area in which the outward-looking nature of Greek economic diplomacy has shown spectacular results in recent years, it is the Balkans." -- Euripides Stylianidis, Deputy Minister of Foreign Affairs. More than 3,500 Greek-run or Greek-owned companies, mainly subsidiaries of firms based in Greece, are currently operating in the Balkans. Those enterprises and entrepreneurs have invested more than EUR 6 billion of Greek capital and created 200,000 jobs in the Balkans, according to Stylianidis. Greece's outward-looking economic policy focuses on four main areas: the Mediterranean basin, the Middle East, and the Arab world; Turkey; the Black Sea and Caspian region; and the Balkans. INVgr welcomes your feedback, ideas, articles, company news or suggestions! (Click here to E-mail us).
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INTERSPORT expands into Bulgaria
June 13, 2006 -- Following the successful launch of INTERSPORT stores in Greece and Romania, ATHEX-listed Fourlis Holdings SA is expanding its athletic goods retail activities in Bulgaria. The country's first INTERSPORT store, situated in Sofia's biggest shopping mall, opened on June 9, 2006. With retail space of 700 square metres, the store offers a large variety of labelled athletic goods as well as INTERSPORT's own-label line of goods. INTERSPORT's expansion plans in neighbouring Bulgaria calls for the opening of a total of five stores within the next three years. Source: Fourlis Holdings SA.
Eurobank EFG buys out Serbian government's minority stake in National Savings Bank
March 17, 2006 -- ATHEX-listed Eurobank EFG has gained control of 100% of Nacionalna štedionica - banka, Serbia's National Savings Bank, following the signing of an agreement with the Serbian government to acquire the remaining 37.7% of NSB's share capital held by the Republic of Serbia, for EUR 35 million. Mladjan Dinkic, Minister of Finance of the Serbian Republic, and Nicholas Nanopoulos, Chief Executive Officer of the Athens-based Eurobank EFG group, signed the agreement today in Belgrade. In September 2005, Eurobank EFG had successfully acquired a 52.5% stake in NSB through a public takeover-bid process -- which then allowed it to become owner of 62.3% in NSB. The signing of today's agreement that transfers the shareholding and control of the Serbian bank to the Eurobank EFG group paves the way for the merger of NSB with EFG Eurobank A.D. Beograd, creating "one of the largest and most innovative banks in Serbia that will offer comprehensive service to Serbian businesses and individuals" throughout the country," according to a statement released by the Greek banking group. The merged Serbian bank will be focusing on retail and corporate banking activities for small and medium-sized enterprises (SMEs) as well as large corporate clients. Commenting on the signing of this agreement, Serbian Minister of Finance Mladjan Dinkic and Ambassador of Greece to Belgrade Christos Panagopoulos welcomed the agreement as "further evidence of the excellent relations between the two countries". Eurobank EFG is the second-largest bank in Greece with assets of over EUR 46 billion. Founded in 1990, Eurobank EFG has received high marks from international rating agencies such as Standard & Poor's, Fitch and Moody's, not only for its financial strength, but also, for the Group's client focus, high quality of services, its heavy investment in modern technologies and its professional and dynamic management and personnel. Eurobank EFG offers a comprehensive array of banking products and services for individuals, corporations, small businesses and institutions. It currently employs more than 16,200 people in Greece and abroad and will be running a distribution network of over 1000 branches and alternative distribution channels by year end. As a member of the Geneva-based EFG Group it has access to many European markets. Apart from its domestic market, Greece, Eurobank EFG operates in Bulgaria, Romania, Poland, Turkey, Cyprus and Serbia and Montenegro. The bank follows the same vision everywhere -- "to be the bank of first choice for its customers, while operating responsibly towards its shareholders and society". It currently has a network of over 400 branches in New Europe and it aims to have over 500 branches developed in the region by the end of 2006. By acquiring Postbank in 2003, Eurobank EFG emerged in Serbia and Montenegro. In the following years EFG Eurobank a.d. Beograd has invested significantly into further developing its distribution network, which amounted to 29 branches by end of 2005. It is worth noting that the National Bank of Serbia, ranked it as one of the major contributors to the branching of banks' organisational network in Serbia. Also, the number of EFG Eurobank a.d. Beograd employees has been increased from 40 people in 2003, to 550 professionals by the end of 2005, which makes the bank one of the major job creators among foreign entities operating in Serbia. With its acquisition of 100% of Nacionalna Stedionica Banka (National Savings Bank), Eurobank EFG Group has become one of the strongest banking organisations in Serbia. Currently, it employs 1,400 people and runs a network of 99 branches all over Serbia. The Group has invested over EUR 215 million in the country (including the recently announced capital increase). Based on current volumes, the new bank that will be created following the legal merger will command combined Total Assets of EUR 359 million, Deposits of EUR 213 million, and Loans of EUR 161 million and Shareholders' Funds of EUR 136 million. Eurobank EFG also initiated its significant donation plan for Serbia in the areas of Health, Education and the protection of the Environment. The above initiative is worth EUR 3 million. From this amount, EUR 1 million has already been disbursed for the Clinical Centre of Serbia to help it purchase the equipment needed to set up the new "Belgrade" National Centre for Positron Emission Tomography, a project of nationwide importance in the field of nuclear medicine. Sources: Eurobank EFG, INVgr.
Global Finance SA launches new regional Private Equity Fund for South-East Europe March 15, 2006 -- Global Finance, the leading South-East Europe private equity management firm, has established its eighth private equity fund in the region, South-Eastern Europe Fund (SEEF). SEEF has had a successful first closing at EUR 197 million. Global Finance anticipates having subsequent closings to raise more than EUR 300 million in total, following which the total funds raised by Global Finance would get close to EUR 1 billion. SEEF will primarily consider control investments and regional expansion opportunities supporting professional management teams. The funds were committed by a group of top-tier Greek and international institutional and private investors, including existing Global Finance investors as well as new ones. Strong investor interest confirms both the attractiveness of the region as well as Global Finance’s performance record and reputation. With offices in Athens, Sofia and Bucharest, Global Finance has been investing in South-East Europe since 1991. Global Finance has established a preeminent position in South-East Europe raising more than EUR 700 million for investments focusing primarily in Greece, Romania and Bulgaria. Sources: Global Finance, INVgr.
Jumbo SA to expand in Cyprus, Bulgaria and Romania
13,000 m2 toy megastore in Sofia to open in 2007 March 2, 2006 -- Jumbo SA, Greece's leading toy retailer, is planning to invest EUR 80 million in Bulgaria over the next two years. With major plans of launching a chain of Jumbo toy megastores in Greece's neighbouring country, the ATHEX-listed firm is already developing its first retail outlet of approximately 13,000 m2 in Sofia, which is expected to open in 2007 and being built on Jumbo's own plot of land. It is currently seeking other sites to lease or purchase in Bulgaria, Cyprus and Greece in view of its strategy to roll out its retail network. It is also interested to enter the Romanian market. In Cyprus, its subsidiary Jumbo Trading Ltd. is developing a 7,000 m2 megastore in Larnaca, which will be the company's fourth store on the island. Jumbo is already the leader in its domestic market, where it operates 41 stores and has a strong brand name ("Jumbo"). Within the next two years, the firm plans to expand its retail network to 50 outlets, four of which will be megastores in Attica. Six new stores are planned for 2006 -- one in Cyprus, one in Athens and four in the rest of Greece. A total of 48% of Jumbo's revenues is derived from toys, while the firm has for the past three years been reducing its dependency on toys (which are predominantly sold during the Christmas sales season) by diversifying its product line to include clothing and gifts.
In 1995, Athens-based Global Finance SA supported a local entrepreneur in his efforts to acquire control in four independent stores and start building the Jumbo chain. Formerly known as Babyland SA, the company grew to become the undisputed leader in the consolidating Greek toy retail market, covering all major cities in Greece and Cyprus. Jumbo created the infrastructure in purchasing, warehousing, inventory control and MIS that allowed it to maintain fast growth rates throughout this period. The company's shares have been listed on the Athens Exchange (ATHEX) since June 19, 1997, while Global Finance sold its participation in the company in 1999. Founded in 1991, Global Finance is an independent investment firm that pioneered private equity in South-East Europe. FMR Corp. and Fidelity International Limited announced that on February 28, 2006, Boston, Massachusetts-based Fidelity Small Cap Stock Fund increased its participation in Jumbo from 3.6% to 7.2% and is now the third-largest shareholder in the Moschato, Athens-based company. Source: INVbg.
New 400 kW electricity transmission line between Greece and Bulgaria to be built February 23, 2006 -- Greece and Bulgaria are to build a new electricity transmission line between the two countries. The 400-kilowatt, two-way line will supplement an earlier facility built in 1970, Greek Development Minister Dimitris Sioufas said today.
He was speaking after a meeting in Athens with Bulgaria's energy and finance minister, Rumen Ovcharov. The Greek side also said that ATHEX-listed Public Power Corporation SA (PPC) would be interested in co-operation in Bulgaria and establishing a presence in Greece's neighbouring country in the wake of its proposal to acquire the Bobov Dol thermal power plant (TPP), which is subject to a ruling from a Bulgarian court. Last year, the Greek state-run power supplier appealed against the stopping of the Bobov Dol privatisation procedure. PPC offered EUR 70.9 million to buy 100% of Bobov Dol and pledged to invest another EUR 34.4 million to upgrade it, outbidding Enel SpA of Italy. The privatisation procedure for the Bulgarian TPP triggered large-scale protests among miners who feared they would lose their jobs if the new owner was not required to purchase local coal. "PPC's presence in the entire region, starting from this proposal of an exceptionally large investment topping EUR 100 million, would further link not only the two countries' electricity systems, but also lead to closer ties in a sector that would determine the level of cooperation, growth and peace in the region as part of the South-East European energy community," Sioufas said. Ovcharov informed Sioufas that Bulgaria would no longer be able to export as much electricity as last year's figure of over eight billion kilowatt hours. Three billion of the total were purchased by Greece. The meeting between the two ministers was attended by the Bulgarian ambassador in Athens, Stefan Stoyanov. Sources: ANA, INVgr.
Piraeus Bank Group launches Balkan real estate fund
January 20, 2006 -- ATHEX-listed Piraeus Bank SA announced the formation of an international investment named Trieris Real Estate Fund focusing on property investments in the Balkans, in view of the positive growth prospects in the region. In a statement released yesterday, the Athens-based banking group said the new company's share capital will be at EUR 50 million, coming mainly from Piraeus Bank clients-investors. Trieris will focus on achieving capital gains by investing in real estate assets with high leasing returns and real estate development, especially in EU candidate countries. The launch of this real estate fund is part Piraeus Bank's strategy to strengthen its presence in the asset management sector, both in Greece and South-East Europe. The funds for investment will be managed by a bank subsidiary abroad. The Piraeus Bank Group's consolidated net earnings are expected to reach EUR 185-190 million for fiscal 2005, a 66% year-on-year increase. In 2004, the group reported earnings using international accounting standards of EUR 127.3 million. In 2005, the Piraeus Bank Group made a series of important strategic moves, which resulted in the expansion and enhancement of its presence in the region: the acquisition of Eurobank AD in Bulgaria, Atlas Bank AD in Serbia, and Egyptian Commercial Bank in Egypt. The Group's network of branches that are not located in Greece rose from 60 in 2004 to 176 in 2005. It employs a total of 2,633 people abroad.
CCHBC and The Coca-Cola Co. to acquire Serbian fruit juice producer Fresh & Co
January 20, 2006 -- Coca-Cola Hellenic Bottling Company SA (CCHBC) announced today that it has agreed to acquire, jointly with The Coca-Cola Company (TCCC), 100% of Fresh & Co, one of the leading producers of fruit juices in Serbia and Montenegro. The acquisition includes a production facility located at Subotica and the juice and nectar brands "Next" and "Su-Voce". CCHBC and TCCC had previously entered into negotiations to acquire this company in 2005, but ceased negotiations on the December 13, 2005. However, the opportunity to acquire the company, in line with CCHBC's investment criteria, presented itself once again and both CCHBC and TCCC have been able to move quickly in concluding negotiations. The net consideration for the transaction is EUR 19.5 million (including the settlement of some of the company's financial obligations but excluding acquisition costs) and is subject to the company's indebtedness at closing not exceeding EUR 23.1 million. The final purchase price is subject to certain adjustments. The transaction is subject to regulatory approval and is expected to be finalised by the end of February 2006. Commenting, Doros Constantinou, Managing Director of CCHBC, said, "We are delighted to have reached agreement in acquiring one of the leading fruit juices companies in this high growth region. The transaction is consistent with CCHBC's strategy of expanding into the non-carbonated segment of the non-alcoholic beverages market and we are delighted to welcome another high quality local brand to our system portfolio." CCHBC is one of the world's largest bottlers of products of The Coca-Cola Company and has operations in 26 countries serving a population of more than 540 million people. CCHBC shares are listed on the Athens Exchange (ATHEX: EEEK), with secondary listings on the London (LSE: CCB) and Australian (ASX: CHB) Stock Exchanges. CCHBC's American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE: CCH).
Cyclon Hellas SA to make Bulgarian and Romanian acquisitions
January 17, 2006 -- Cyclon Hellas SA yesterday announced it is about to acquire two companies in Bulgaria and Romania. Part of its strategy to expansion in the Balkans and Eastern Europe, Cyclon said it planned to buy 100% of oil product distributors Bulgaria Automotive Products Ltd. and Kartex Trading SRL (Vardinoyannis Group), Bucharest. Piraeus-based Moore Stephens Chartered Accountants SA has completed a due diligence inspection of both companies, while SOL SA is expected to complete an evaluation report to determine the value of the buys. Cyclon Hellas said the acquisitions would be financed with the proceeds of an asset liquidation of its wholly-owned subsidiary Avin Oil Trader N.E., which is currently under liquidation (since December 14, 2005). A newly-formed subsidiary of Cyclon Hellas, Arcelia Holdings Ltd., will buy the two firms in Bulgaria and Romania, according to the ATHEX-listed producer and trader of lubricants, packaged lubrication products and liquid fuels. Cyclon Hellas' headquarters are located in the northern suburb of Maroussi, on the outskirts of Athens. On November 7, 2001, Cyclon Hellas SA (formerly LPC Hellas SA) and Macedonian Plastics SA merged. The company was founded in 1974. Kartex Trading was established in 1994. Panagiotis Lapiotis is the Romanian company's director. Bulgaria Automotive Products was established in 2002. Sources: ANA, INVgr.
EFG Eurobank Group's takeover bid of National Savings Bank of Serbia (NSB) completed September 29, 2005 -- EFG Eurobank Group's takeover bid (TOB) to acquire 90.2% of the shares in Nacionalna štedionica - banka, Serbia's National Savings Bank, was completed today. Eurobank acquired 52.5% through this TOB process for approximately EUR 41 million, but the Serbian state did not offer Eurobank its 37% stake in the Serbian bank. However, the Serbian state did not reject a potential agreement for the sale of its stake to EFG in the future. EFG Eurobank Group now controls a 62.3% equity stake in NSB, which has a network of 70 branches throughout the country, and intends to raise its participation in the bank through capital increases in the near future. In a press release dated September 9, EFG Eurobank Group announced that it had received approvals from the National Bank of Serbia and the Serbian Securities and Exchange Commission to launch a TOB to acquire 90% of the shares in NSB. EFG Eurobank Group already controlled a minority stake of approximately 10% in NSB and on August 24 reached an agreement with private shareholders of NSB to acquire shares representing 49% of the bank's share capital for a consideration of approximately GBP 32 million. The TOB targeted a maximum 90.2% of the bank‘s shares. The price offered was CSD 627,540.80 per NSB share, compared to a face value per share of CSD 100,000, a book value per share of CSD 124,857.64 and a current market price of CSD 179,200 per share. EFG Eurobank Group perceives Serbia to be a market with great potential and of strategic importance for the development of its operations in Southern and Eastern Europe. The Group has already invested more than EUR 50 million in its subsidiary EFG Eurobank AD Beograd, which currently has built up a network of 20 branches. EFG Eurobank Group intends to combine NSB's existing commercial base and developed branch network with Eurobank's own know-how, financial strength and significant market experience. NSB will benefit from significant synergies both in the Serbian market and in the region and will aim at becoming one of the leading Serbian banks, focusing on retail and SME operations, continuously improving the quality of the services and fostering long-term client relationships. EFG Eurobank Group intends to expand the established products and services of NSB through the introduction of financial products it has already developed in other regional markets. If the current branch network of its subsidiary EFG Eurobank Beograd AD is included, the EFG Eurobank Group now operates a combined network of 92 branches nationwide, thus significantly strengthening its position in the Serbian banking market. David Watson, Director of EFG Eurobank Ergasias' International Division, commented: "Serbia is a core market for EFG Eurobank Group. Nacionalna štedionica – banka (NSB) is a healthy and promising bank which will allow us to significantly enhance our position in Serbian banking. We believe this is a very attractive offer to all NSB shareholders, including the Serbian state, and we are confident that is going to be met with great success, signaling a new era for NSB". Richards Butler, the international law practice, acted on the sale of the National Savings Bank of Serbia. The Richards Butler team was led by corporate finance partner Philip Taylor. Allen & Overy acted for EFG.
IMESE accepts applications for new academic year
September 8, 2005 -- The Institute of Management and Entrepreneurship of Southeastern Europe (IMESE) announced that it is currently accepting applications for the 2005-2006 academic year. These applications concern the following programmes:
IMESE is a Thessaloniki-based non-profit educational organisation, in which the Federation of Industries of Northern Greece and 20 of the largest companies in Northern Greece are partners. These leading firms are, in alphabetical order:
The institute's main aim is to further the personal and professional development of established executives as well as to educate and designate young talented people in business management. IMESE offers postgraduate-level educational programmes, emphasising the promotion and maintenance of close liaison with the business community. Studies are conducted in constant collaboration with company-members of the Federation of Industries of Northern Greece and embody a practical business orientation. The Chartered Management Institute of the UK, the leading organisation for professional management, is working in partnership with IMESE. Together, they support the leaders of the future, helping them improve their performance in order that they can deliver results in a dynamic world. Vassilis Takas is IMESE's President.
Alpha Bank SA completes Serbian acquisition of Jubanka
August 10, 2005 -- Alpha Bank SA completed its acquisition of Jubanka a.d. Beograd. The Greek bank's tender offer for the remaining ordinary shares of Jubanka that were held by hundreds of minority shareholders proved to be successful. Alpha Bank now holds a 97.14% equity stake in the seventh-largest bank in Serbia. Insiders estimate the total acquisition price to have reached EUR 171.5 million. The acquisition was initially announced on January 26, when Alpha Bank signed an agreement to purchase 88.64% of Jubanka from the Serbian banks' two major shareholders, the Republic of Serbia and Jugobanka, which respectively held 82.69% and 5.95% of Jubanka's ordinary shares, for a total consideration of EUR 152 million. Alpha Bank's strategy is to further expand its banking operations in South-East Europe.
OTE sells Bulgarian and FYROM mobile subsidiaries to COSMOTE
August 1, 2005 -- Hellenic Telecommunications Organisation SA (OTE) signed an agreement today with its subsidiary COSMOTE Mobile Telecommunications SA for the sale of OTE's equity stakes in mobile subsidiaries GloBul of Bulgaria and MTS, the wholly-owned holding company of Cosmofon of FYROM, to COSMOTE for EUR 490 million. OTE's participations in CosmoBulgaria Mobile EAD -- a wholly-owned subsidiary that trades under the name GloBul -- and in MTS Holding BV, a special-purpose vehicle registered in The Netherlands which owns 100% of the shares of Cosmofon Mobile Telecommunications Services AD Skopje, were sold to COSMOTE for EUR 400 million and EUR 90 million, respectively, which will be paid in two installments, the second of which will be transferred 40 days following the equity transaction. The transfer of the shares of MTS will take place on August 30, 2005. The transfer GloBul took place today, August 1. Market insiders believe that this agreement benefits OTE, since it enhances the Greek telecom multinational's cash position as well as the OTE Group's structure. OTE is the incumbent telecommunications provider in Greece, and together with its subsidiaries forms the leading group of companies in Greece in terms of revenue. OTE is among the largest companies listed on the Athens Exchange (ATHEX) and is also listed on the New York and London bourses. Through its investments in South-East Europe, both in fixed-line and mobile telecommunications companies, OTE addresses a potential customer base of 60 million people. A member of the OTE Group, COSMOTE started commercial operations in Greece in April 1998, five years after its two competitors Panafon (Vodafone) and STET Hellas (TIM) commenced their operations, and in June 2001 was the only third entrant to achieve first position in its domestic market. Currently it has over four million customers in Greece, where it is the number-one mobile player, and also has mobile operations in Albania, FYROM, Bulgaria and Romania. In 2004 the company achieved exceptional financial performance, among the best in Europe. Revenues exceeded EUR 1.58 billion, while net earnings reached EUR 308.2 million.
Almost 300,000 Greek tourists visit Bulgaria in H1 2005 July 30, 2005 -- A total of 298,645 Greek tourists visited Bulgaria during the first six months of this year, according to data released by the Bulgarian National Statistics Institute. The institute's latest statistics show that 2,703,470 foreigners visited Bulgaria during the same period, a 7.0% year-on-year increase, of which 1,530,510 were tourists. Greeks were the largest group of tourists visiting Bulgaria in the first half of this year. The same data show that Turkey is the most favourite tourist destination for Bulgarians. The country attracted 245,101 Bulgarians in the first half of 2005. Greece is the second most popular holiday destination for Bulgarians. Source: Sofia Morning News / Novinite Ltd.
Global Finance SA sets up Global Emerging Property Fund July 6, 2005 -- Athens-based Global Finance SA, the private equity and venture capital management firm with over EUR 400 million under management, announced today that it had set up its first real estate fund, the Global Emerging Property Fund. The special purpose vehicle, organised under the laws of Jersey and managed by Global Finance, will be a real estate private equity investment fund pursuing long-term gains through investing in development and completed real estate primarily in Romania, Bulgaria, and Serbia and Montenegro, with aggregate capital of EUR 70-100 million and a possible second closing of up to EUR 150 million. Global Finance said that the fund's capital was more than EUR 125 million. EFG Eurobank Properties SA is the official consultant for the new facility. Private investors and organisations are among the shareholders in the fund. They include the European Bank for Reconstruction and Development (EBRD) and Vienna Stock Exchange-listed IMMOEAST Immobilien Anlagen AG, a 51%-owned subsidiary of IMMOFINANZ Immobilien Anlagen AG, the most diversified property company in Europe. Global Finance said that the fund would focus on acquiring and developing commercial properties in Romania, Bulgaria and Serbia, such as modern high-standard office and trade centres as well as industrial properties. These properties would be rented out to multinational and local companies, the firm said. Sources: EBRD, INVbg.
TERNA SA lands EUR 86 million railway infrastructure project in Bulgaria June 14, 2005 -- The European Commission has approved the selection of TERNA SA, the ATHEX-listed construction company, to upgrade and electrify the Krumovo-Parvomay section of Bulgaria's Plovdiv-Slivengrad railway line. The 37.7-km. project is worth EUR 86 million. The upgraded tracks will accommodate cargo train speeds of up to 80 km./hour and up to 120 km./hour for passenger trains. The city of Slivengrad is located close to the Bulgarian-Turkish border. The total cost of the Plovdiv-Slivengrad railway infrastructure project is EUR 340 million. It is the largest Bulgarian project financed by the EU's Instrument for Structural Policies for Pre-Accession (ISPA) programme. The Plovdiv-Svilengrad railway upgrade is jointly financed by the European Investment Bank (EUR 150 million), ISPA (EUR 153 million), and the Bulgarian state (EUR 37 million). The project is of key importance to Bulgaria since it overlaps with sections of pan-European corridors 4 and 9. Negotiations with TERNA, a member of the Athens-based GEK Group of Companies, will commence within the next couple of days, Bulgarian Finance Minister Milen Velchev informed BTA, the Bulgarian News Agency. Source: INVbg.
3rd Forum Invest Economic Conference in Greece:
Grande Bretagne Hotel,
Syntagma (Constitution) Square, Athens, June 6-9, 2005 Introduction by Konstantinos Tsoukalidis, Chairman, Hellenic-Romanian Business Council "The Hellenic-Romanian Business Council fully supports the economic forum organised in Athens by Forum Invest, in the frame of the same co-operation inaugurated with success in the year 2000, supporting the economic relations between Greece and Romania through the third edition of Hellenic-Romanian economic forums organised this year under the title 'South-East Europe: Priority Policies for a Sustainable Regional Economic Development'. "The organisation of the third Hellenic-Romanian conference in Athens on June 6-9 marks a new turning point to the development of the fruitful bilateral economic relations now that Romania is on the final stage of its accession to the European Union, entering the united and challenging environment of the European market. At the same time, Greece continues to play its important role to the developments in South Eastern Europe by participating actively to political initiatives as well as promoting the regional economic development through the Hellenic Plan for the Economic Reconstruction of the Balkans. "An event like this, organised in high standards, is offering the opportunity of contacting decision makers from both countries creates the conditions for new collaborations as well as of enhancing the existing ones encouraging the investments. The Hellenic-Romanian Business Council gives a great importance to the further development of both the Hellenic investments in Romania as well as Romanian investments in Greece, considering the mutual exchange of capitals and know-how between the two countries as an imperative for the development of the entire region of South-East Europe."
Piraeus Bank SA to buy 100% stake in Egyptian Commercial Bank... June 2, 2005 -- Piraeus Bank SA, Greece's third-largest private-sector banking group, yesterday placed a tender offer for a 100% stake in Egyptian Commercial Bank (ECB) of Cairo for EGP 20 (EUR 2.804) per share for a total of 9,626,122. Before launching this public tender, the Greek banking multinational had received the approval of both the Central Bank of Egypt and the Egyptian Capital Market Authority (CMA). Piraeus Bank also announced that, following the successful completion of its Egyptian acquisition, a capital increase will follow, which is expected to be executed by the end of this month. Listed on the Cairo Stock Exchange, the ECB maintains a network of 18 branches. At the end of last year, the Egyptian bank had total assets of EUR 410 million, total loans (after provisions) of EUR 184 million, customer deposits of EUR 374 million, and total equity of EUR 23 million. ...closes first Serbian deal... May 28, 2005 -- Piraeus Bank Group sealed a deal to acquire 80% of Atlas Bank AD, based in Belgrade, for EUR 19.5 million. Atlas Bank has a network of 11 branches in three cities in Serbia, while two new branches are going to be inaugurated soon, bringing the total number of branches to 13. It employs 160 people. The total assets of Atlas Bank are EUR 63 million, total loans EUR 36 million -- representing a mere 1% market share -- and its customer deposits amount to EUR 44 million. The ATHEX-listed banking group could go after another acquisition in Serbia, according to George Mantakas, head of Piraeus Bank's international division, who spoke to Elaine Green of the Athens News during the EBRD annual meeting in Belgrade. "We now want to expand further in Serbia and this could be done organically or through acquisition," Mantakas told the Athens News in an informal interview. Greece's fifth-largest lender, with a 11% market share in December 2004, is determined to garner a 5% market share of the banking market in the Balkans. ...and completes Eurobank AD acquisition Earlier this month, on May 19, Piraeus Bank officially completed its acquisition of a 99.7% stake in Bulgaria's Eurobank AD for EUR 48.4 million. Following this takeover, which was signed on January 24, Piraeus Bank's market share in Bulgaria reached close to 4.5%. Piraeus Bank Group now boasts a network of 61 branches in 28 cities in Bulgaria with total combined Bulgarian banking assets of just over EUR 439 million. At the end of 2002, ING of The Netherlands formed a strategic alliance with Piraeus Bank in the fields of bancassurance and asset management. ING controls 4.2% of Piraeus Bank shares, while the latter holds a direct participation in ING. Both joint-ventures are expected to increase their presence in the growing sectors of asset management and bancassurance. Both partners have also agreed to proceed with a plan that will examine the prospects of expansion of their joint-venture activities in other countries in South-East European, such as Bulgaria and Turkey. [full profile...] [premium content] (INVgr) ING has been present in Bulgaria since 1994, when a branch of ING Bank was established in Sofia. In 1998, the bank opened an office in Varna. ING Group started its pension business in Bulgaria in April 2001, only after the inception of the new pension insurance legislation. In addition, ING Pension Insurance Company EAD has a licence to carry out additional pension insurance. [full profile...] [premium content] (INVbg) Source: INVg, INVbg.
Intracom SA sells 66% of Bulfon AD to BTC, increases stake in Intrasoft International SA
May 27, 2005 -- Intracom SA sold its 66% participation in Sofia-based Bulfon SA to the recently-privatised Bulgarian Telecommunications Company (BTC) for an undisclosed price, according to an official announcement sent to the Athens Exchange (ATHEX) by the Greek telecommunications equipment manufacturer today. The same announcement also mentioned that Intracom has acquired 1,877 shares of Luxembourg-based Intrasoft International SA, a member of the Intracom Group, raising its stake from 69.73% to 100%. Bulfon was established in 1995 as a 34%/66% joint-venture between BTC and Intracom SA to develop, produce and implement modern telecommunications equipment in Bulgaria. Over the past decade, Bulfon has been developing, installing and managing a nationwide network of public card payphones throughout the country, using chip-cards as a means of payment. Bulfon currently has more than 8,000 phones in 350 cities, towns and villages in operation throughout Bulgaria. [more...] (INVbg)
Aktor SA expands in Kuwait, Qatar and Romania May 27, 2005 -- Aktor SA, the ATHEX-listed construction group closely linked to the Bobolas publishing family, is the preferred bidder for a EUR 82.5 million project in Kuwait. The firm also participates in a EUR 100 million project in Qatar, while it it is involved in three projects with a total budget of EUR 50 million in Romania.
Turnaround success of RomTelecom boosts OTE Q1 net profit May 27, 2005 -- Hellenic Telecommunications Organisation SA (OTE) posted an 89% year-on-year rise in net profit for the first three months of 2005, partly due to the turnaround success of its Romanian subsidiary, RomTelecom, according to officials. Net profit rose to EUR 90.7 million, in contrast to EUR 48.1 million in the first quarter of 2004. Revenues were up by 6% to EUR 1.3 billion, outdoing market expectations. RomTelecom saw a three-fold increase in net profit to EUR 46.1 million in the first quarter of 2005, on the back of revenues of EUR 225.7 million. In its domestic market, OTE's fixed-line operating revenues dropped by 1.2% in the first quarter of 2005, but this was a marked improvement on the 10% drop seen in the fourth quarter of 2004, due to competition from private fixed-line operators.
Greece is Bulgaria's second-largest foreign investor, after Austria In excess of 1,500 Greek enterprises invested over EUR 1.8 billion in Bulgaria since 1992 May 22, 2005 -- Greece is a leading investor in the Bulgarian banking sector, controlling 19.3% (in terms of assets), 19.3% (liabilities), 23.5% (loans to NFI, net) and 18.5% (deposits of NFI) of the market in the first half of this year, according to the Bulgarian National Bank (BNB) and calculations by United Bulgarian Bank AD (member of the NBG Group). Greece is the country's second-largest foreign investor, after Austria, with 10.2% of Bulgaria's FDI (foreign direct investment) inflows. Over 1,500 Greek-owned companies have invested in Bulgaria since 1992, accounting for FDI inflows worth EUR 1.8 billion. Greek investors primarily focus on Bulgaria's industry (food, building materials, clothing, etc.) and services (banking, telecommunications, information technology, insurance and tourism) as well as trade. In addition, Greek tourists form the largest share of foreign tourists coming to Bulgaria, with a total of 273,062 Greeks visiting the country between January and May 2005. In February 2005, several leading Greek-run and Greek-owned companies established the Hellenic Business Council in Bulgaria (EESB in Greek or HBCB in English) with the aim of protecting the interests of Greek companies in Greece's neighbouring country and boost bilateral Hellenic-Bulgarian economic relations, according to To Vima journalist Dimitris Harontakis. Members include United Bulgarian Bank AD (UBB), a subsidiary of National Bank of Greece SA (NBG Group), Bulgarian Post Bank AD (EFG Eurobank Ergasias), EKO - ELDA, Chipita and Delta (BrandCo), Panagaea, Greek glass manufacturer YOULA, Intracom, BB&T, Spider N. Petsios & Sons SA, Greek chocolate manufacturer ION SA and S&B Industrial Minerals SA.
Sources: INVgr, To Vima.
Source: Hellenic Business Council in Bulgaria.
Lamda Development SA to complete one of South-East Europe's largest shopping and entertainment centres in October
Mediterranean Cosmos Shopping & Leisure Centre May 20, 2005 -- Lamda Development SA, a member of the Latsis Group, said that it expects to complete its Mediterranean Cosmos development, the first and largest shopping and leisure centre of its kind in Northern Greece, in October of this year. This EUR 110 million project is one of the largest shopping and entertainment complexes in South-East Europe. Athens Exchange (ATHEX) listed Lamda Development expects the centre's turnover to reach approximately EUR 220 million in the first year of operation. Strategically located in Pylea, in South-East Thessaloniki, Mediterranean Cosmos stands on a large 250,000 m2 site, which belongs to the Ecumenical Patriarchate, providing 45,000 m2 GLA and 3,000 parking spaces. Designed to attract people of all ages, Mediterranean Cosmos includes a wide array of small shops and major anchor retailers, restaurants, a multi-unit food court, a supermarket, a multiplex cinema (11 screens) and a bowling and entertainment centre for the entire family. Thessaloniki is the second-largest city in Greece and a rapidly-growing political, cultural and industrial hub for South-East Europe. Capturing the Mediterranean spirit The essence of the Mediterranean Cosmos -- "Earth, Air, Water, Myth, Art, Culture" -- serves as the inspiration for the project offering a powerful and memorable customer experience. One of the centre’s major features is a traditional "Greek village" comprising of a church, museum, artisan shops, traditional taverns, an open civic space and a 500-seat outdoor amphitheatre for the staging of musical events, dance performances and festivals. Unique business opportunity With a budget of approximately EUR 100 million, the Mediterranean Cosmos Shopping & Leisure Centre represents a tremendous business opportunity and is scheduled for completion during 2005. The project is being developed in collaboration with an international leader in similar developments, Sonae Imobiliaria of Portugal, whose local company, Sonae-Charagionis SA, bought a 39.9% stake in the project in June 2002. Out-of-town retail market in southern Europe The out-of-town retail market in southern Europe is becoming more international in flavour as developers push back the boundaries in their desire for expansion and retailers seek to take advantage of cheaper rents and fresh markets by jumping borders, according to Savills' latest European report. Retail parks and factory outlet centres are following in the wake of this drive for greater representation. Developers are also focusing on smaller and less supplied catchments as the more mature shopping centre markets of southern Europe become saturated and planning regulations, in some areas, start to bite. The retail warehouse sector is being driven by consumer expenditure and demand from retailers, which is helping to create a leasing market in this owner-occupier dominated sector. This in turn is supporting the investment market. Greece is playing catch up with its European neighbours and last year increased its total stock of shopping centre space by 26% to 400,000 sq.m., which could double in the next two years, particularly with completion this year of two of the largest schemes in the pipeline: Mediterranean Cosmos in Thessaloniki and Media Village in Athens, totaling 107,000 sq.m. While Athens continues to account for the lion's share of existing space, at 41%, more new schemes are now being developed in the regional cities, but retail parks and factory outlets remain at an embryonic stage. Lamda's expansion in Romania and Bulgaria Lamda Development is reportedly in advanced talks for co-operation related to similar large-scale projects in Bulgaria and Romania. The latter was the first country -- and Bucharest the first city -- in South-East Europe in which the Lamda Development Group decided to expand its activities. In Bucharest, Lamda Olympic Srl -- a 50/50 joint venture between LAMDA Development and ATHEX-listed Technical Olympic SA that was established in 2002 -- has recently successfully developed the Lake View Condominium into a 23,000 m2 residential complex on a 9,000 m2 plot of land that includes 93 luxury residential apartments and 6,500 m2 of underground space. The Lake View Condominium investment, worth EUR 20 million, has been recognised as the most important residential project in Bucharest.
Global Finance SA acquires majority stake in leading Romanian software company May 20, 2005 -- Through its private equity funds, Athens-based Global Finance SA acquired in late April an 88% stake in TotalSoft SA, a leading Romanian software company, by buying out passive shareholders in co-operation with the company's management team. Totalsoft was founded in 1994 by Liviu Dan Dragan, one of Romania's IT experts and a successful entrepreneur. The company has established a leadership position in locally developed Enterprise Resource Planning (ERP) and Human Resources software as well as in project management software. Totalsoft also provides outsourcing services to Western European and American IT service companies, a revenue stream which accounts for more than 20% of the company's revenues. Totalsoft has a strong client list in all sectors, from multinational companies (e.g. Orange, GlaxoSmithKline, Henkel) to leading Romanian companies (e.g. Medicover, BCR Leasing, Continental Hotels). The company has experienced high growth of approximately 35% annually and robust operating profitability of 20% in the past three years. Last year, Totalsoft's revenues exceeded USD 5 million and on EBITDA of USD 1.2 million. Both ERP software and outsourcing services are expected to grow significantly in the next years. As Romanian businesses only recently started spending on IT infrastructure for their operations, the opportunity for future growth is very promising. Totalsoft is also expected to benefit from the anticipated increase in expenditures in IT in Romania, as the country is preparing to join the European Union.
Global Finance SA's Growth Fund invests in Royal Potatoes of Bulgaria May 11, 2005 -- Athens-based Global Finance SA concluded the management buy-out (MBO) of Royal Potatoes, a Bulgarian manufacturer and wholesaler of frozen potatoes. Following the acquisition and a subsequent share capital increase, Global Finance's Growth Fund shall maintain a majority stake in the company. Royal Potatoes currently operates a 10,000-tonne-per-annum processing facility in Samokov, south of Sofia. It offers a full range of frozen products in the Bulgarian market, where it commands a 40% market share. Royal Potatoes plans selective investments in equipment in order to improve efficiency and ensure quality. Most importantly the company plans to strengthen its commercial capabilities in Bulgaria and to initiate exports in neighbouring markets. Royal Potatoes is the Growth Fund's second investment in Bulgaria. The EUR 20 million Growth Fund targets fast-growing companies in Bulgaria and Romania and supports dynamic entrepreneurs and management teams. The EBRD, the European Commission, Bulgarian Post Bank AD, and Doverie Capital are among the fund’s key investors. The European Commission’s participation is through the SME Finance Facility Special Fund, which is administered by the EBRD.
Greece, Bulgaria and Russia sign landmark Burgas - Alexandroupolis trilateral pipeline pact April 13, 2005 -- Bulgaria, Greece and Russia signed a EUR 522 million agreement for the construction of the Burgas - Alexandroupolis oil pipeline that will bypass Turkey's busy Bosporus strait, putting an end to 10 years of negotiations. Greek Minister of Development Dimitris Sioufas, Bulgaria's Regional Development Minister Valentin Tserovski and Russia's Minister of Industry and Energy Viktor Borisovic Khristenko put their signatures under the landmark trilateral memorandum on Tuesday in Sofia. The ceremony was also attended by Bulgaria's Prime Minister Simeon Saxe-Coburg, Greece's ambassador to Sofia, Prokopios Mandzouranis, Russia's envoy to Bulgaria, Anatoli Potapov, and other distinguished guests. Under the long-delayed deal, a 285-kilometre pipeline will link Bulgaria's port of Burgas to the Greek northern city of Alexandroupolis by the end of 2007. Initial talks on building the pipeline began in 1993 but were delayed because of disagreements over its cost, ownership and feasibility. The pipeline will have a capacity of 700,000 barrels a day. The planned annual capacity will be 15 million metric tonnes once the first stage of construction is finished, 24 million tonnes after completion of the second stage and 35 million on final completion. It will be able to handle exports from oil-rich Azerbaijan via a Russian pipeline linking the Caspian and Black Seas. It would also allow oil from Kazakhstan to be shipped to Burgas. There were agreements of the three governments between 1999 and 2002 to establish equal one-third shares for each country's designated participants, but that clause was not included in the memorandum signed on Tuesday. British Petroleum PLC's Russian joint-venture, TNK-BP, is heading the project and other partners are to include ATHEX-listed Hellenic Petroleum SA of Greece and Technoexportstroy of Bulgaria. Source: Novinite Ltd.
EFG Eurobank Ergasias SA to derive 20% of group earnings from South-East Europe, excluding Greece, by 2009 February 21, 2005 -- EFG Eurobank Ergasias SA plans to strengthen its position in Serbia through acquisitions. At the same, the Greek banking group will be developing and expanding its own retail network in Serbia. EFG Eurobank Ergasias envisions that by 2009, the bank will derive 20% of its total group profits from South-East Europe, excluding Greece.
Alpha Bank SA expands in Serbia by acquiring 88.64% of Jubanka January 26, 2005 -- Alpha Bank SA signed an agreement today to purchase an 88.64% stake in Jubanka a.d. Beograd, as part of its strategy to expand its banking operations in South-East Europe. Alpha Bank is paying a total consideration of EUR 152 million to acquire all of the 936,182 shares currently held by the Republic of Serbia and Jugobanka, who respectively hold 82.69% and 5.95% of Jubanka's ordinary shares in issue. Alpha Bank will launch by June 2005 a tender offer for the remaining 11.36% of Jubanka ordinary shares in issue, currently held by 1,685 minority shareholders, with terms equivalent to those in the agreement with the two principal sellers. The transaction is subject to regulatory approvals. The acquisition of the Serbian bank will build on Alpha Bank's presence in Serbia, strengthening our operations with 90 branches, 286,000 retail and 30,000 business customers. Serbia is a key market for Alpha Bank in terms of growth prospects in the retail, corporate and public sectors. Alpha Bank intends to optimise prospects in these segments by developing local marketing and introducing a portfolio of new financial products and services. In this growth context, Alpha Bank, for the first three years of operation, will maintain the Jubanka workforce at the level recorded at the end of June 2004. Commenting on the acquisition, Yannis S. Costopoulos, Chairman and Managing Director`, Alpha Bank, said: "The acquisition of Jubanka is a significant step forward in implementing Alpha Bank's growth strategy in South-East Europe. The synergies arising from the combination of our capabilities as a well-established regional player with Jubanka's strong local franchise will help Alpha Bank to become the financial services provider of choice for households and businesses in Serbia." About Alpha Bank Alpha Bank, founded in 1879, is the second largest Bank in Greece with about 16% market share. With 445 branches, Alpha Bank is also active in South-East Europe (Albania, Bulgaria, Romania, FYROM, Serbia and Montenegro) and Cyprus. Alpha Bank offers a comprehensive range of financial services to private and corporate customers. With approximately Euro 32 billion in assets, more than Euro 2 billion in equity, Alpha Bank generated EUR 284 million in profits after tax and minorities in 2003 and more than EUR 300 million in profits after tax and minorities in the 9month period of 2004. Alpha Bank is listed on the Athens Exchange with a market capitalisation of about Euro 6.2 billion and is a constituent of the Eurotop 300 Index. Alpha Bank was the Official Bank of the Athens 2004 Olympic Games. About Jubanka Established in 1991, Jubanka is the seventh-largest bank in Serbia with approximately 1,300 employees and a market share of about 4%. In June 2004, Jubanka reported EUR 219 million in total assets and EUR 115 million in shareholders' equity. Jubanka offers an extensive range of banking products and services including current/term deposit accounts (in local & foreign currency), short/long term loan facilities (in local & foreign currency), as well as retail/corporate cards, and brokerage services. Jubanka is also one of the leading providers of Visa card in Serbia. Products and services are delivered through a geographically diverse network of 90 branches, numerous ATMs, electronic and phone banking facilities to about 286,000 retail and 30,000 corporate customers. Alpha Bank will publish its fiscal-year 2004 financial results on February 23.
Piraeus Bank SA acquires 99.7% of Bulgarian Bank Eurobank AD in Bulgaria January 24, 2005 -- Piraeus Bank SA signed an agreement today to acquire a 99.7% stake in Bulgarian Bank Eurobank AD, Bulgaria's 16th-largest bank. No acquisition price was released, but market insiders estimate the price tag to be between EUR 45-50 million. The Bulgarian bank is to be sold to ATHEX-listed Piraeus Bank by Sofia-based Petrol AD, the country's largest publicly-listed company in terms of market capitalisation (BSE-Sofia ticker: PET). Following this takeover, Piraeus Bank will own a nationwide Bulgarian network of 61 branches in 28 cities. Bulgarian Bank Eurobank currently has 48 branches in 28 cities, while Piraeus Bank has 13 branches in 10 Bulgarian cities. Eurobank's total assets are EUR 220 million, while Piraeus Bank's assets in Bulgaria, prior to Eurobank's acquisition, total EUR 219 million. The Greek bank has a market share of 2.5% (loans), while Eurobank's market share is 1.7% (loans). The total customer deposits in Bulgaria of the combined Group, including Eurobank, are EUR 225 million on total loans of EUR 310 million, resulting to a market share in Bulgaria of over 4.2%. The transaction is subject to regulatory approvals.
Hyatt Regency Hotels & Tourism (Hellas) SA participates in Tirana casino licence auction with group of Albanian investors
January 17, 2005 -- Greek hotel, resort and casino group Hyatt Regency Hotels & Tourism (Hellas) SA announced its participation in the international auction for a casino licence in Tirana, the Albanian capital, through its 60%-owned subsidiary, Gaming Investments Overseas SA, The privately-owned Laskaridis shipping and hospitality group participates with a minority stake in this newly-formed company. If it wins the international auction, Gaming Investments Overseas is believed to control a 51% stake in the casino venture/licence, while a local Albanian company, which owns a newly-built property on Tirana's central square, will hold the remaining 49%. In addition, Hyatt will to take on the management of the casino through its wholly-owned subsidiary, United Reserve SA. The company is expected to receive a management fee of 3% of sales plus 10% of EBITDA for running the casino. The Albanian Ministry of Finance, which announced calls for expression of interest in the auction in the Financial Times of January 14, hopes to sell the 15-year exclusive licence for USD 10 million. Hyatt Regency is expected to have a 30.5% shareholding interest in the Tirana casino and a 100% management contract. Ian Gosling will reportedly be in charge of the Albanian casino, while the casino licence is expected to be issued in April of this year. Listed on the Athens Exchange (ATHEX: HYATT), Athens-based Hyatt Regency Hotels & Tourism (Hellas) SA has set its sights on expanding its present operations and entering new markets, such as Albania. Related story on INVgr:
Taking stock: Business File Special Survey on Greek outward investment
When Greek companies first started to enter the Balkans at the beginning of the last decade, it was assumed that the upheaval associated with the disintegration of the Soviet empire and the fragmentation of the Yugoslav Federation was, if not over, then well on the way to winding down. Only the most far-sighted -- and few there were -- could foresee the violence that was still to follow in Albania, the Former Yugoslav Republic of Macedonia (FYROM) and Serbia or the political turbulence that would at times come close to paralysing government in Bulgaria and Romania. Greek entrepreneurs investing in the region realised that they were entering an area of high economic instability. But this was something with which they were familiar from the recent history of the domestic economy in which they had faced high inflation, soaring interest rates, currency devaluation and on-again, off-again privatisation programmes. They thought that they could cope. And they did. But only with great difficulty, which involved a steep learning curve. Perhaps the most significant thing to say is that none of the large companies that have gone to the region have failed, although the state-controlled Hellenic Telecommunications Organisation (OTE) is facing severe difficulties with the profitability of several of its foreign ventures and may, in fairly short order, under incoming New Democracy administration, divest or liquidate some of its assets. In the private sector, the ice-cream maker, Delta, is reconsidering its position, although its management is oracular about precisely how it sees the way forward. The publication Business File, has tracked the course of Greek outward investment in three Special Surveys in 1995, 1998, and 2000. In its latest, "Taking stock," published in October 2004, it analyses the foreign investments of eight of the largest Greek companies that have invested in the Balkans and beyond plus those of three large banks that have followed them. Using financial documents and interviews with senior executives it attempts to evaluate the benefits and pitfalls of investing in developing economies. It also considers the role of venture capital in the foreign investment process. Basically the report concludes that if firms have iron nerves, deep pockets and strong legal back-up, they can be profitable -- but probably only over the longer term. It illustrates that, as the economies of southeastern Europe converge with those of the EU, the business focus, is shifting from dodging bombs and bullets to more traditional concerns such as:
The regional political environment is for the moment relatively stable. A new wave of Greek investors has already begun, or is gearing up, to follow the pathfinders. But, the report concludes, they need to be mindful of the lessons learned by their predecessors.
Timing is all.
In short, the basic elements for success abroad are the same as those of investing at home: vision and timing. [more...]
Bulgaria attracts record FDI in 2004 December 23, 2004 -- Foreign Direct Investment (FDI) in Bulgaria is forecasted to reach a record EUR 2 billion by the end of the year, according to a BulgariaInvest Agency report released on Wednesday. Bulgaria managed to attract approximately 30% of total FDI inflows in South-East Europe, with Austria (EUR 492.5 million), The Netherlands (EUR 166.8 million) and Greece (EUR 103.5 million) being the top-three foreign investors in the country, respectively. Investments over the last three years reached USD 4,463 million, almost USD 1.5 billion more than the total foreign investments in Bulgaria between 1997-2001. Source: Sofia News Agency.
Delta Project SA establishes Romanian subsidiary December 21, 2004 -- Delta Project SA established a subsidiary in Romania, DELTA PROJECT CONSTRUCT S.R.L. The newly-formed Romanian company, which is 95% owned by Moschato-based Delta Project, plans to offer the exact same services in the local market as its parent company does in Greece and will focus on the same sectors. Listed on the Athens Exchange's New Stock Market (NEXA), Delta Project is mainly involved in the study, design and implementation of so-called Turn Key Projects on behalf of production companies active in the following manufacturing sectors:
Delta Project takes on the responsibly and support of each assigned project. The Greek firm has been involved in power projects since 1992. Seven years later, Delta Project started constructing a Small Hydro Power Station (950KW) and since then, the company has continuously been expanding its activities in the renewable energy (RES) production sector. Sources: INVgr, ATHEX, Delta Project.
SEVE launches on-line database of Greek overseas banking operations November 25, 2004 -- Thessaloniki-based SEVE (Exporters' Association of Northern Greece) recently launched a free-of-charge service for its members and the general public. The new Greek-language service is a unique on-line database of Greek banks with brief details of all their branches outside of Greece, including the name of the bank, country, address, phone/fax numbers and the name(s) of each branch manager. According to SEVE, Greek banks currently operate a total of 650 branches outside their domestic market. Apart from Cyprus, the five countries where Greek banks have the largest concentration of branches are: Romania (36 branches), Albania (31), USA (31), Bulgaria (25) and the United Kingdom (23). The cities where branches of Greek banks are most concentrated are: London (19), Bucharest (15), Tirana (10) and Sofia (8). The top-three Greek banking groups that have the largest amount of branches outside of Greece are state-controlled National Bank of Greece SA (NBG) (110 branches) as well as privately-run Piraeus Bank SA (102) and Alpha Bank SA (64), according to SEVE's most recent data. Furthermore, the only Greek bank that has a representative office in Turkey is NBG, located in Istanbul. Other countries where branches of Greek banks are established include: Luxembourg (EFG Private Bank (Luxembourg) SA), Canada (National Bank of Greece (Canada)), The Netherlands (National Bank of Greece SA), USA (Marathon National Bank of N.Y. (a member of the Piraeus Bank Group), Atlantic Bank of New York (a NBG subsidiary), South Africa (The South African Bank of Athens Ltd. (a NBG subsidiary), Hellenic Bank), Bulgaria (Emporiki Bank - Bulgaria EAD, United Bulgarian Bank AD (UBB has 145 branches throughout the country), Bulgarian Post Bank AD, Piraeus Bank SA, National Bank of Greece, Interlease AD (a NBG subsidiary), Alpha Bank), Australia (National Bank of Greece SA), Russia (Hellenic Bank), Sweden (National Bank of Greece SA), Cyprus (Alpha Bank Limited, National Bank of Greece (Cyprus) Ltd., Bank of Cyprus Ltd., Emporiki Bank - Cyprus Ltd.), Egypt (National Bank of Greece), Romania (Egnatia Bank Romania, Alpha Bank Romania, Piraeus Bank Romania SA, Emporiki Bank - Romania SA, National Bank of Greece, Garanta SA, Banca Romeneasca, ETEBA Romania SA, Banc Post SA, Alpha Leasing Romania), Serbia and Montenegro (National Bank of Greece SA, Alpha Bank, EFG Eurobank a.d., Beograd), Albania (Alpha Bank, Tirana Bank SA, National Bank of Greece, Emporiki Bank - Albania SA), FYROM, France, Channel Islands (EFG Eurobank Ergasias International (CI) Ltd. - Guernsey, Alpha Bank Jersey), United Kingdom (Emporiki Bank of Greece SA, Piraeus Bank London Branch, Hellenic Bank Ltd., Alpha Bank London Ltd., National Bank of Greece SA), EFG Eurobank Ergasias), Armenia (Emporiki Bank - Armenia CJSC), Germany (Emporiki Bank - Germany GmbH, Agrabank von Griechenland, National Bank von Griechenland AG Athen, Piraeus Bank Frankfurt Branch), and Georgia (Emporiki Bank - Georgia SA).
OTE to swap Balkan subsidiaries for COSMOTE stake
OTE and COSMOTE sign MoU in Athens, effectively transferring OTE's ownership of GloBul (Bulgaria) and Cosmofon (FYROM) to COSMOTE November 3, 2004 -- State-controlled Hellenic Telecommunications Organisation SA (OTE) and its mobile subsidiary COSMOTE Mobile Telecommunications SA announced that the boards of both publicly-listed companies approved today the signing of a memorandum of understanding for the commencement of the procedures for a share capital increase of COSMOTE through a contribution in kind by OTE of the shares of the Bulgarian mobile telecommunications company CosmoBulgaria Mobile EAD -- a newly-created, wholly-owned subsidiary that trades under the name GloBul -- and of MTS Holding BV, a special-purpose vehicle registered in The Netherlands which owns 100% of the shares of FYROM mobile telecommunications company Cosmofon Mobile Telecommunications Services AD Skopje. The move is part of ongoing efforts to increase OTE's 59% stake in its successful mobile arm, ahead of full absorption. [more...] [INVbg] Source: INVbg.
AmCham's Greek Economy Conference to be held for 15th consecutive year
Dates: November 1 & 2, 2004
October 31, 2004 -- The annual Hour of the Greek Economy Conference will be held this year November
1-2, about one month earlier than has been customary.
Organised by the American-Hellenic Chamber of Commerce, one of the largest and most active American chambers in Europe,
the annual event provides a unique platform for the private and public sectors to exchange views to exchange views and for economic policy to be discussed in an open
forum. The Greek Economy Conference will be organised for the 15th consecutive year, under the auspices of the Greek government. Over the last years, the
Greek Economy Conference has been established as the leading and most successful forum in the economic sector.
EBRD and IFC convert debt into 7.28% stakes at Banc Post October 27, 2004 -- The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) today each acquired a 7.28% stake in Romania's Banc Post by converting debt into shares. The transaction, combined with a USD 10 million capital increase also approved at Banc Post's annual general meeting of shareholders today, is intended to strengthen Banc Post's position as a leading Romanian financial services provider. Following the capital increase, which will be covered by the shareholders, Banc Post's capital will increase by USD 26 million. Athens-based EFG Eurobank Ergasias SA is the largest shareholder of Banc Post, and will maintain its participation of over 50% in the share capital. EFG Eurobank Ergasias has also signed a put and call arrangement with the EBRD and IFC with respect to their share in Banc Post. EFG Eurobank also holds an option to acquire shares currently owned by GE Capital that amount to 7.48%. Banc Post is the fifth-largest bank in Romania and the largest with Greek ownership. It employs approximately 3,500 people. In 2004 the bank has shown impressive growth, with both lending and deposit-taking increasing faster than that of the Romanian banking market. The Bank runs a network of 164 branches throughout Romania, covering all areas of banking with emphasis on retail and large and medium enterprises following operational systems and customer service standards similar to those of Greece. It is worth noting that in 2004 Banc Post was awarded by The Banker, member of the Financial Times publishing group, as 'Best Bank in Romania.' The EBRD and IFC originally each extended USD 10 million subordinated, convertible loans to Banc Post in 1998 as part of an effort to increase the bank's capital and prepare it for privatisation, which eventually occurred in 2002. Under today's transaction, each is converting USD 8 million of the debt into shares. The EBRD, owned by 60 governments and two intergovernmental institutions, aims to foster the transition from centrally planned to market economies in Central and Eastern Europe and the Commonwealth of Independent States (CIS). The mission of IFC is to promote sustainable private-sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilises capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than USD 44 billion of its own funds and arranged USD 23 billion in syndications for 3,143 companies in 140 developing countries. IFC's world-wide committed portfolio as of FY04 was USD 17.9 billion for its own account and USD 5.5 billion held for participants in loan syndications. Source: EFG Eurobank Ergasias SA.
Alumil Milonas SA ranked 30th in BusinessWeek's listing of Europe's top 100 high-growth, job-creating companies
October 20, 2004 -- Alumil Milonas SA has been ranked in 30th position among Europe's top 100 hot growth companies in this week's BusinessWeek magazine. BusinessWeek and Europe's Entrepreneurs for Growth, a Brussels-based organisation that represents more than 3,000 entrepreneurs, have teamed up to create a listing of Europe's high-growth, job-creating companies. And with good reason. At a time when Europe's economy is languishing and blue chips are shedding jobs, it seems appropriate to shine a spotlight on small companies that are reporting triple-digit increases in sales and hiring by the scores. To be ranked on the Europe's 500 list, companies must be based either in one of the 15 core European Union member states or in Iceland, Norway or Switzerland. An entrepreneur must own a minimum equity stake in the company, but no single shareholder can own a stake of more than 50%. Companies must also have been founded before 2001, have at least 50 employees in the year 2003 and a maximum of 5,000 in the year 2000, and show profits at least once during a three-year reference period. Companies nominate themselves as candidates for the ranking. With sales of EUR 135.4 million in 2003, Alumil Milonas created 772 new jobs between 2000-2003 and had a workforce of 1,352 last year. The company has begun operations of new production lines in Komotini, Greece and Tirana, Albania to help meet the increasing demands of domestic and international markets. The completion of the company's new plant in Belgrade, Serbia in 2005, combined with the performance of aluminium profile producer Alpro A.D. Vlasenica of the Republic of Srpska (Bosnia and Herzegovina), will make Alumil Milonas the biggest aluminium systems producer in the Balkans and one of the biggest in Europe, with a total capacity of 80,000 tonnes per annum. This week's issue of BusinessWeek also features an interview with George Milonas, Chairman, CEO and major shareholder of the company. The magazine writes: "From his stronghold in Kilkis near Thessaloniki, George Milonas is steering aluminum products manufacturer Alumil Milonas on a course of international expansion. A wise move, considering Greece's construction market is due for a hangover following a a pre-Olympic building binge. 'It won't be a good year on the Greek market,' says the 45-year-old chairman and CEO. 'But South-East Europe is very good, and that will help us.' Formed in 1988 by the Milonases, a Greek family with roots in industry, the aluminum conglomerate now boasts subsidiaries in 45 countries. Sales have more than doubled since 1999, to EUR 135 million in 2003, bolstered by public contracts for projects related to the Athens Olympics. Milonas wants to boost sales 20% more this year. To meet that goal, Alumil is looking east. The company, which is 70% owned by the Milonas clan, spent EUR 1.5 million this year to buy an aluminium extrusion plant in Bosnia and is building factories in Serbia, Romania, Bulgaria, and Egypt. But expansion is squeezing profits. Milonas, an avid jazz fan and skier, acknowledges that 2004 earnings before interest, tax, depreciation, and amortization will likely remain at last year's level of EUR 33.1 million. Competition is increasing, and Alumil must pare costs and improve efficiency to stay ahead. The strong euro could also dent results. 'If the euro goes above USD 1.30 it would be a problem for us,' says Milonas. But like his favourite metal, Milonas' company should remain light but strong." About Alumil Alumil is ranked among the largest European aluminium extrusion and profile production groups -- it has been in first position in Greece since 2000 -- establishing production sites, large sales networks and warehouses for products targeting architectural and industrial uses, shipbuilding, transportation, etc. With 26 subsidiaries -- 20 of which are based in Europe, the Middle East and Africa -- Alumil owns and operates production sites in the Northern Greek industrial areas of Kilkis, Serres, Komotini and Xanthi as well as in Romania, Bulgaria, Serbia, Bosnia and Albania. Alumil's parent company was established in 1988 and has been listed on the Athens Exchange (ATHEX) since 1998. Alumil has successfully infiltrated into 45 markets in Europe, the Balkans, the Middle East and the USA. A significant competitive advantage remains the company's widespread sales network in Greece and in every client-country. Included four times in GrowthPlus' Europe's 500, Alumil's group revenues exceeded EUR 179 million in 2004, while group EBITDA and net earnings before tax and minority interests reached EUR 29 million and EUR 10 million, respectively. Sources: BusinessWeek (October 25, 2004), Business Partners (vol. III, no. 15), INVgr, Alumil Milonas.
Global Bulgarian & Romanian Growth Fund invests in Familia October 19, 2004 -- Global Finance SA announced that the Global Bulgarian & Romanian Growth Fund, a private-equity growth fund which it manages, has made its first investment of EUR 600,000 in Familia, a chain of convenience stores in Bulgaria. Sofia-based Familia currently operates a network of 15 convenience stores with average sizes of between 200-400 square metres, which are mainly located in downtown Sofia and have a predominantly food-and-beverage product range. In the first half of 2004, Familia, which is co-owned and managed by Christo Popov, a local entrepreneur, had a turnover of approximately BGN 5 million. Familias plans to aggressively expand its network in Sofia and subsequently in other Bulgarian cities. New stores in the pipeline are expected to expand Familia's retail network to a total of 20 outlets by year-end. Familia is the Growth Bulgarian & Romanian Growth Fund's first investment in Bulgaria. The EUR 20 million Growth Fund targets fast-growing companies in Bulgaria and Romania and supports dynamic entrepreneurs and management teams in both countries. The Global Bulgaria and Romania Growth Fund was set up in June 2003 by the London-based European Bank for Reconstruction and Development (EBRD) and Athens-based Global Finance to target small and medium-sized enterprises (SMEs) in Bulgaria and Romania. Other investors include Bulgarian Post Bank AD, Romania's Banc Post SA and the European Commission with EUR 6.5 million through the equity window of the EU/EBRD SME Finance Facility. The new Global Bulgaria & Romania Growth Fund is planning to make other equity investments with an average size of EUR 800,000 in growth-oriented SMEs in Bulgaria and Romania, taking both minority and majority stakes. Managed by Global Finance, the fund will mainly target companies that are led by strong management teams, have good potential for growth and are building strong brand names and distribution networks, while taking strong positions in the local markets. It will also look for companies that are using local resources and are highly competitive within their field. Global Finance is one of Greece's leading private equity and venture capital management companies owned 49.9% by EFG Eurobank Ergasias SA and 51.1% by its Managing Director, Angelos Plakopitas. Among other activities, Global Finance manages three venture capital funds that have focused or are focusing on the Balkans: Euromerchant Balkan Fund (USD 27 million), Black Sea Fund LP (a private-equity fund investing primarily in medium-sized enterprises in the Black Sea region; USD 100 million) and Global Bulgarian & Romanian Growth Fund (USD 20 million), a recent start-up designed to make investments in SMEs in these two EU-converging countries. Global Finance has expressed its wish to be partners of small local companies in Bulgaria and Romania, investing amounts from EUR 0.5-1.0 million. Sources: INVbg, Global Finance.
Mercer enters into partnership with Planet SA in Greece and South-East Europe October 8, 2004 -- Mercer Human Resource Consulting LLC has entered into an agreement with Planet SA, the leading Greek management consulting firm. With over 140 consultants and support staff, Planet will represent Mercer in Greece, advising clients on business strategy, technology and operations. Core services will include human capital consulting, actuarial advice and the provision of global information reports. Mercer and Planet have already started work to launch Mercer's Total Remuneration Survey in the Greek market -- a report on pay and benefit levels for different jobs in various sectors. Cameron Hannah, World-wide Partner and head of Mercer’s operations in Eastern Europe, commented: "Planet is a natural business partner because of its reputation for high-quality service delivery and experience in a broad range of consulting areas. We look forward to working together to expand our services to clients in Southeast Europe." Dr. Christos Giannakopoulos, Chairman and Managing Director of Planet, said: "Mercer’s position as a global market leader of HR services makes it the ideal affiliate for us and together we will be able to deliver a seamless service to meet our clients' various needs." Planet SA was established in Greece in 1987. In 2000, it acquired Ernst & Young's management consulting practice for South-East Europe to become Planet Ernst & Young SA. In February this year, Planet decided to end its agreement with Ernst & Young to pursue a new business strategy. The company's turnover for 2003 was around EUR 17 million. [more...]
Interamerican builds new Euroclinic hospital in Romanian capital
Interamerican Romania is preparing to sell health insurance products as from 2005 October 4, 2004 -- Interamerican Romania has almost completed the building of the first private hospital in Romania, to be open in the first half of 2005. This facility will grant the company a competitive edge in health insurance, where it aims to become the market leader. Euroclinic Bucharest, the country's first private hospital, will be located on Floerasca Boulevard in the heart of Bucharest. It is a brand new facility that is currently being built next to the Urgenta University Hospital, Romania's most modern public hospital. Euroclinic Bucharest is the flagship facility of Medisystem Romania, a member of the Athens-based Interamerican Group. Interamerican Romania Insurance Company SA entered the Romanian market in 1995.. The company's aim is to establish the first private healthcare management system, in association with its privately-owned hospital (Euroclinic), and to secure a leading position in the health insurance market. Recognising the tremendous opportunities in the medical service provision and health insurance product sectors in Romania, Interamerican is set to launch the country's first private-sector initiative that will combine health insurance and state-of-the-art private medical services. Interamerican will capitalise on its dynamic presence in Romania through its insurance subsidiary, Interamerican Romania, to create new services for the domestic market. Building on the success of Medisystem in Greece, Interamerican's health insurance products will be launched when the hospital becomes operational in 2005. The hospital provides a full range of original procedures, obstetrics and daypatient care. Tele-medecine facilitates the most up-to-date medical processes. Euroclinic Bucharest will provide services to Medisystem customers and the general public in Romania. The hospital will employ cutting-edge medical technology and has established collaborations with many top doctors in Bucharest. In May 2003, the forced concrete structure of the building was completed. The building has six floors and a total built-in area of 4,700 square metres. The private hopistal is expected to be finished and fully equipped in the first quarter of 2004. Euroclinic Bucharest will be a general hospital offering top-quality medical care and accommodations to its customers. In the building, Medisystem Romania will operate a day clinic, a doctors' group practice and an ultra modern imaging department. In addition to the hospital, Medisystem Romania will operate a second group practice in Bucharest and, together with Interamerican will create and operate a network of highly-trained doctors to serve its clients. Soon after the launch of its first project in the Romanian capital, Medisystem Romania will expand its activities to five other major cities throughout the country. The Interamerican Group already owns and operates three clinics in Athens: Euroclinic Athens, Athens Clinic and Children's Euroclinic. Both Interamerican and Athens Euroclinic are members of Eureko BV, a privately-owned financial services group headquartered in Amsterdam, whose core businesses are primarily insurance and asset management, and which has operations in fifteen European companies. Medicom, which is also part of this group of companies, is a holding company of Euroclinic Athens, the hospital services provider, and is determined to expand its presence in Central and Eastern Europe. The Interamerican Group has a 36-year history of leading the Greek insurance market. Today, Interamerican is one of the largest Life and Health insurance companies in Greece with a market share of 14% and the fourth-largest in Non-Life, with a market share of approximately 6.5%. The Group also operates in Bulgaria (since 1998) and Romania (since 1995), through start-up operations, as well as in Cyprus (Interlife, originally founded in 1999). Interamerican was founded in 1968 by Dimitris Contominas, who became its CEO in 1974. Interamerican Romania is a developing insurance company based in Bucharest, which offers Life and Non-Life products to individual and corporate clients. The Company plans to enter the Health insurance market. A state-of-the-art private clinic has been built in Bucharest, the first of its kind in Romania, which will become fully operational in 2005. Interamerican Romania was established in 1995 and distributes its insurance products through 35 agencies countrywide. Interamerican Romania has 181 employees at its headquarters and 356 full-time agents across the country. In the fourth quarter of 2004, Interamerican Romania launched its first investment-linked product; the balance of such products, out of the total Life portfolio, is expected to increase over time, so that investment-linked products will contribute 23% to the company's net Life insurance result by 2007. Eureko is the majority shareholder in Interamerican Romania with the European Bank for Reconstruction and Development (EBRD) holding a 20% share. Interamerican Romania aims to achieve a market share of 3.2% in Life in 2005 and 3.8% in 2006. In Non-Life, the focus is not primarily on market share but on profitability in the short-term. Cross-selling will be a key element in increasing profitability. The company reported a total net result in 2004 of EUR -1.3 million which is lower than the previous year (EUR -0.5 million), mostly due to health insurance and health services development expenses and higher than expected claims. Net income of the Life insurance company improved by 25% and came in at EUR -0.3 million compared with a 2003 net result of EUR -0.4 million. The Non-Life company also reported Net income that was better than last year (EUR -0.4 million compared with EUR -0.5 million in 2003). The company posted 54% Life net earned premium growth and 46% Non-Life net earned premium growth compared with 2003. Total Gross Written Premiums were EUR 11.6 million. Athens Medical Centre in Bucharest The Athens Medical Group, the only Greek hospital company to date with operations overseas, already owns and operates a medical centre in the Romanian capital -- the Medsana Bucharest Medical Centre. Founded in October 1997, Bucharest-based Medsana BMC srl is wholly-owned by Athens Medical Centre SA (AMC). Apart from Romania, the group is also active in the Czech Republic, Bulgaria and Russia. Interamerican Group's key events in 2003
Interamerican
and EBRD join forces in South-East Europe EBRD's direct investment in Interamerican Romania Insurance Company SA:
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Greece and Bulgaria on the road to better transport October 1, 2004 -- According to the Athens News Agency (ANA), Greece and Bulgaria share a common will to upgrade transport infrastructure and to further develop co-operation in the strategic sector of transport. Transport Ministers from both countries met on the occasion of completing the new road that connects the Bulgarian city of Gotse Delchev and Drama in northern Greece. Sources: ANA, Business Partners (September-October 2004).
SEVE and Romanian Consulate in Thessaloniki organise seminar for investors interested in Romania September 2, 2004 -- Thessaloniki-based Exporters' Association of Northern Greece (SEVE) and the Consulate General of Romania in Thessaloniki are organising an informational seminar entitled 'Investment climate and Possibilities in Romania,' to be held at the Thessaloniki Chamber of Commerce and Industry, September 8, 2004 (18:30 hours).
Telenor fully acquires leading Montenegrin mobile operator ProMonte GSM
Greece's Sarantitis Group sells its minority stake in Podgorica-based ProMonte to Norway's Telenor August 11, 2004 -- Fornebu, Norway-based Telenor ASA announced today that it completed the acquisition of an additional 55.9% stake in Montenegrin mobile operator ProMonte. After completion of the acquisition, Telenor will own 100% of the shares in ProMonte. The purchase price is EUR 64.8 million, valuing ProMonte to EUR 116 million on a 100% basis. The company had a negative net interesting bearing debt of EUR 2.7 million (cash EUR 4.6 million and interest bearing debt of EUR 1.7 million). Telenor first entered the Montenegrin mobile market in 1995 as part of the Greek-Norwegian consortium ETL (European Telecom Luxembourg), a joint venture between Telenor Mobile Communications AS, W-Com Investments, Westsouth Telecom and TopStar Shipping and Trading. ETL and PTT of Montenegro jointly established ProMonte and obtained a licence for mobile operation in 1996. ProMonte was the first to launch commercial mobile operations in Montenegro in July 1996. [full story...]
First Data Corp. completes acquisition of payment processing unit from Delta Singular SA
Denver-based world-wide leader in e-commerce and payment services adds long-term Alpha Bank SA contract, expanded capabilities, and 900 employees in South-East Europe June 26th, 2004 -- First Data Corp. (NYSE: FDC), a global leader in electronic commerce and payment services, today announced it has completed the acquisition of Delta Singular Outsourcing Services SA from Delta Singular SA [premium content] (ATHEX: DESIN), a leading technology company in Greece. Delta Singular Outsourcing Services provides payment processing services in Greece, the Middle East and the Balkans. Simultaneously, Delta Singular Outsourcing Services entered a 10-year agreement to provide payment processing and related services to its largest client, Alpha Bank SA. As the second largest commercial bank in Greece, Alpha Bank issues MasterCard cards, is the largest issuer of Visa cards and the only issuer of American Express cards in Greece. "We're excited about the addition of Delta Singular Outsourcing Services to First Data and are committed to growing the business in Southeastern Europe," said Ms. Pam Patsley, president of First Data International. "Delta Singular Outsourcing Services brings talented employees, solid client relationships and complementary capabilities to First Data. It is a strategic fit for First Data, enabling us to offer expanded services to our clients while creating a strong presence for us in Greece, the Middle East and the Balkans. And, Delta Singular Outsourcing Services will benefit from First Data's global presence and extensive resources." Delta Singular Outsourcing Services processes more than 1.5 million debit cards and 2 million credit cards, drives more than 1,200 ATMs and manages more than 12 million POS transactions annually. "First Data and Delta Singular Outsourcing Services are a terrific match. Delta Singular Outsourcing Services' clients will benefit from First Data's payments expertise and world-wide reach, while our capabilities and footprint in Greece helps First Data grow in this key market," said Andreas Drymiotis, Chairman of Delta Singular. "We look forward to working together to bring a wide range of payment services to our clients throughout South-East Europe and beyond." [full story...]
Bulgaria's CPC clears Chipita's Royal Foods acquisition July 9th, 2004 -- The Commission for Protection of Competition (CPC), Bulgaria's anti-trust body, allowed Chipita East Europe Limited, a subsidiary of the Greek croissant and snacks maker Chipita International SA, to buy Cyprus-based Bakery Foods Bulgaria and thus to acquire Bulgarian pastry and snacks maker Royal Foods Holding (RFH). The deal will be carried out in two stages. First, Bakery Foods Bulgaria will buy Royal Foods' Swiss rolls production line and its Swiss rolls trademarks and consequently Cyprus-based Chipita East Europe will buy 100% of Bakery Foods Bulgaria. Chipita plans to upgrade Royal Foods' swiss rolls technologies and marketing and to launch new products, AII Data said. CPC said on its Web site that after the deal is closed, Bakery Foods Bulgaria will be entitled to acquire Royal Foods Swiss rolls production facilities. Royal Foods owns two factories in Bulgaria -- in Elin Pelin and Gara Tompson, both near Bulgarian capital Sofia. The company also has a plant in Russia, a distribution network in Hungary and is unfolding similar networks in Romania and Serbia. Royal Foods operates a factory for pre-cooked French fries under a franchise scheme in Bulgaria. [full story...] [INVbg premium content]
Alpha Bank SA bids for Serbia's Jubanka
July 6, 2004 -- Alpha Bank SA has bid for state-owned Jubanka, the Serbian bank currently under tender. The Greek bank is among eight banks shortlisted by the National Bank of Serbia for the purchase of an 88% stake in Serbia's fifth-largest bank. Alpha Bank is up against a further seven banks that also go through to the candidacy stage: Bank Austria Creditanstalt, Austria's Erste Bank der Oesterreichischen Sparkassen (Erste Bank), Hungary's OTP Bank, GE Capital Europe, a unit of General Electric of the U.S., Slovenia's Nova Ljubljanska Banka, France's Societe Generale and Italy's UniCredito, according to a press release from the Serbian government. Three other bidders did not qualify. A confidentiality agreement will now be signed, with memorandum available for purchase until July 15th, a government statement said, with initial bids due August 30. The sale should be completed by year-end.
Panos Ltd. expresses interest to invest EUR 3.1 million in holiday village on Bulgaria's Black Sea coast June 30, 2004 -- Greek construction firm Panos Ltd., based in Albena, Bulgaria, is interested in setting up a EUR 3.1 million holiday village near Balchik on Bulgaria's northern Black Sea coast, Krassimir Mihailov, the mayor of Balchik, said. [more...] (INVbg)
Bulgaria's DSK Bank sells 5.03% of Bulgarian Post Bank AD to ACBH June 30, 2004 -- Bulgaria's DSK Bank has sold its 5.03% stake in Bulgarian Post Bank AD to the majority shareholder, Cyprus-registered ALICO/CEH Balkan Holdings Ltd. (ACBH). The deal was wrapped up a month ago and has already been green-lighted by the central bank. ACBH now holds 96.74% of Bulgarian Post Bank. A year ago it bought out the 5.47% stake of local insurer DZI. In the ACBH holding company itself, where ownership is split between American International Group, Inc. (AIG) of the U.S. and Greece's EFG Eurobank Ergasias SA, the Greeks have been trying to buy out AIG for about a year now. The Bulgarian central bank has granted EFG Eurobank Ergasias permission for full ownership of the holding, while the Greek financial supervision authority is expected to follow suit. [more...] (INVbg)
Coca-Cola, Nestle jointly launch Nestea ice-tea drink in Bulgaria June 30, 2004 -- U.S. soft-drink producer The Coca-Cola Company and Swiss food giant Nestle SA have launched a joint product, Nestea, on the Bulgarian market, it emerged on Tuesday. The product is part of Coca-Cola's and Nestle's joint project launched in 1991, combining Nestle's long experience in instant drinks production and Coca-Cola wide distribution and production network. Nestea is offered in Bulgaria in glass and plastic bottles. Nestea in glass bottles is produced in Plovdiv, southern Bulgaria, where Coca-Cola Hellenic Bottling Company SA has poured funds in new production facilities. [more...] (INVbg)
NBG Group interested in acquiring Banca Transilvania, eyes Russian and Turkish markets
June 24, 2004 -- National Bank of Greece SA (NBG), the country's largest state-controlled bank, is currently in talks with Romania's Banca Transilvania SA. The NBG Group, which has pinpointed Banca Transilvania as a possible takeover target, is keen on expanding its presence in the Romanian market. The group's management team in Athens is also looking into ways of rapidly entering the Russian and Turkish markets, according to market sources. NBG has been active in the Romanian market for several years and enhanced its presence through the acquisition of Banca Romaneasca at the end of 2003. On September 25, 2003, NBG announced its acquisition of 81.65% in Banca Romaneasca SA (which means 'Romanian Bank') to boost its presence in South-East Europe. When Banca Romanesca, now 90.8666% owned by NBG (as of March 31, 2004), was acquired last year, the Bucharest-based bank had total assets of approximately EUR 140 million. In December 2003, Banca Romaneasca had 25 branches throughout Romania, while on December 11, 2003, NBG's former Chairman, the late Theodore Karatzas, expressed his intentions to expand this network to approximately 40 branches across the country. NBG's decision to actively look into acquiring another Romanian bank is part of a regional expansion plan designed to strengthen NBG's position as the largest financial group in South-East Europe. Banca Romaneasca was established in September 1993 as a fully-licensed universal commercial bank, owned by a group of private Romanian commercial enterprises and individuals. On September 11, 2003, the Romanian-American Enterprise Fund (RAEF), based in New York City, which became the bank's largest shareholder in February 1999, sold for itself, its partners and others their investment in Banca Romaneasca to National Bank of Greece for USD 38,621,536. The deal was completed in October 2003. Banca Romaneasca, a medium-sized bank, reported a gross profit of ROL 96 billion for H1 2003, against ROL 92.7 billion in H1 2002. NBG has an extensive overseas network of branches, subsidiaries, representative offices and associated companies, and has been present in Romania since 1996. Banca Romanesca's current market share is a mere 1%. NBG's total Romanian assets are believed to be approximately EUR 250 million. Source: INVgr.
Chipita International SA increases participation in Cream Line SA June 22, 2004 -- Chipita International SA announced that it has signed a contract with Emporiki Venture Capital Emerging Markets Ltd., a subsidiary of Emporiki Bank of Greece SA, to purchase Emporiki VCEM's 15% participation in Cream Line SA for EUR 2.67 million. Following this acquisition, Chipita International will own 57.6% of Cream Line, a producer of chocolate products with production facilities in Kilkis' industrial zone. Operating two subsidiary companies in Bulgaria (with a 60% market share) and Romania (80% market share), Cream Line is well known for its 'Finetti' trademark. The company's revenues in 2003 reached EUR 20.7 million, while sales in 2004 are expected to reach EUR 22.5 million on EBITDA of EUR 3.2. million. Cream Line is building a new factory in Romania, which is expected to commence operations in 2005. The company is also eager to penetrate new markets such as the USA, Russia and Poland. Other shareholders of Cream Line include Mr. G. Gounaris (8%), Mr. Th. Makris (21.87%), Eurohellenic SA (12.5%) and Mr. M. Kourmoulis (4.5%). Source: INVgr.
Bulgaria offers to set up entry infrastructure on Burgas - Alexandroupolis pipeline June 17, 2004 -- Bulgaria has offered to build an integrated entry infrastructure for the Burgas-Alexandroupolis and Burgas-Vlore oil pipeline projects, it emerged on Wednesday. The offer was made at a meeting between Bulgarian government officials and representatives of international companies, participating in the two projects. Bulgarian Prime Minister Simeon Saxe-Coburg Gotha, Deputy Prime Minister Plamen Panayotov and Regional Development Minister Valentin Tserovski took part in the meeting. The companies included Unocal Corporation, Chevron Texaco, KazMunayGas, Tsakos Shipping and Trading, Ferrostaal AG, LUKoil - Russia, LUKoil - Bulgaria, the Latsis Group, Skadden, Arps, Slate, Meagher & Flom, Shell Exploration and Production, TNK-BP and Frontier Ltd. Bulgarian state company Technoexportstroi, which also took part in the meeting, is likely to participate in the construction of the pipelines. The companies' officials have supported the offer. The Burgas-Alexandroupolis oil pipeline to run between Bulgarian Black Sea port of Burgas and Alexandroupolis in northern Greece has been mulled for a long time as a trilateral effort of Bulgaria, Greece and Russia. Talks with the consultant on the project, ILF Consulting Engineering, are currently underway for updating the project. The Burgas-Vlore pipeline will run between Burgas and the Adriatic port of Vlore, southern Albania. The two pipeline projects are estimated to cost EUR 1.5 billion. Source: INVbg.
Gazprom increases transit gas to Greece and Serbia through Bulgaria June 14, 2004 -- Russia's gas major Gazprom is looking to increase the volume of gas that it transports through Bulgaria with the construction of new pipelines from Bulgaria to Greece and Serbia. Bulgaria is one of the many transit countries Russia relies on for the export of its gas to Europe. Gazprom owns a 50% stake in Overgas, Bulgaria's largest gas supplier. It is looking to export 6 Bcm of gas to Greece and 1.5 Bcm to Serbia. Greece is already fairly dependent on Russia for its gas. The country's natural gas import monopoly, state-owned Public Gas Corporation (DEPA) SA, purchases from Russia's Gazexport (Gazexport has a 20-year supply contract for 2.8 Bcm per year of gas, which expires in 2016) and is looking to diversify its sources. Increasing the volume of gas passing through Bulgaria would increase the transit fees the country receives. Athens-based DEPA is in charge of developing Greece's gas industry in all facets. Source: INVbg.
First Data Corp. to acquire payment processing and outsourcing unit from Delta Singular SA
Deal heralds entry of leading global payments provider to Greece and South-East Europe Delta Singular to merge with Alpha Bank SA June 10, 2004 -- First Data Corp. (NYSE: FDC), a global leader in electronic commerce and payment services, today announced it has signed an agreement to acquire Delta Singular Outsourcing Services SA (DSOS), the payment processing and outsourcing division and fully-owned subsidiary of Delta Singular SA [premium content] (ATHEX: DESIN), a leading technology company in Greece. Serving financial institutions and major corporations in Greece, the Middle East and the Balkans, DSOS provides payment processing and outsourcing services, including card processing, ATM and Point of Sale (POS) driving and call center support. Through the acquisition of DSOS, First Data has secured a long-term agreement to provide payment processing and related services to Alpha Bank SA (ATHEX: ALFA). The bank has always been the principal client of DSOS and is Delta Singular's controlling shareholder, with a 38.8% stake, as at February 29th, 2004. Alpha Bank is the largest issuer of Visa cards and the exclusive issuer of American Express cards in Greece. Founded in 1879, Alpha Bank is the second-largest private commercial bank in Greece. With 445 branches, Alpha Bank is also active in South-East Europe and Cyprus. Alpha Bank offers a comprehensive range of financial services to private and corporate customers. With approximately EUR 32 billion in assets, more than EUR 2 billion in equity, Alpha Bank generated EUR 284 million in profits after tax and minorities in 2003 and nearly EUR 100 million in profits after tax and minorities in Q1 2004. Alpha Bank is listed on the Athens Exchange with a market capitalisation of about EUR 5 billion and is a constituent of the Eurotop 300 Index. Alpha Bank is the Official Bank of the Athens 2004 Olympic Games. [full story...]
Greece, Russia, Bulgaria to make new commitment on trilateral oil pipeline agreement May 26, 2004 -- Greece, Russia and Bulgaria are to hold a service meeting next week to prepare a memorandum of co-operation on a long-delayed plan to build a pipeline that would carry Russian oil to Alexandroupolis through Burgas, George Salagoudis, Greece's Deputy Development Minister, said on Tuesday. "We want firstly to advance the issue on a political level," Salagoudis said at the 10th Thessaloniki Forum, held at the Hyatt Regency Hotel in the Greek northern capital. He said that the project had gained fresh impetus following recent contact between the Greek Premier, Costas Karamanlis, and Russia's President, Vladimir Putin; and that Russia was favourably disposed to its continuation. Salagoudis criticised the previous government, which lost power in Greece's national elections on March 7th, for key delays two years ago that had further delayed the project. Source: ANA.
Bulgaria's MobilTel EAD sold to Austrian investors and international consortium of private-equity investors
Athens-based Global Finance SA involved in Central and Eastern Europe's largest-ever LBO May 26, 2004 -- A consortium comprising some of the existing Austrian shareholders of Mobiltel Holding GmbH and seven private equity investors, yesterday signed definitive documentation regarding the acquisition of MobilTel EAD, Bulgaria's top mobile phone operator, for the total consideration of EUR 1.2 billion in cash, making it the largest-ever leveraged buy-out (LBO) in Central and Eastern Europe, according to Citigroup Investments Inc., which is part of the consortium. Mobiltel Holding, the consortium of four Austrian legal entities that fully acquired Bulgaria's biggest mobile group in January 2002, will be acquired by a consortium of seven private-equity funds (60%) and three of the existing shareholders of Mobiltel Holding (40%) who currently hold a 70% stake in the Austrian holding company. Vienna-based BAWAG P.S.K. Group, Austria's third- largest banking group which is controlled by the Austrian Federation of Trade Unions, will sell its 30% stake in the successful Bulgarian GSM operator. The offer was placed through BidCo AD, the consortium's Bulgarian bidding vehicle that was formally established in Sofia on February 25, 2004, and is financed through EUR 450 million in contributed equity, EUR 650 million in acquisition debt and MobiTel's estimated net cash balance of EUR 100 million at closing. BidCo is 40% owned by a consortium of seven investors led by ABN AMRO Capital of The Netherlands, Citigroup Investments Inc. of the U.S. and Vienna-based Communications Venture Partners Limited (CVP), for EUR 1.2 billion in cash. The consortium also includes Sandler Capital Management of the U.S., Warsaw-based Innova Capital, Athens-based Global Finance SA, and 3TS Venture Partners Oy of the Czech Republic. The other 60% is controlled by three Austrian investors -- Dr. Josef Taus (10%), the prominent Austrian industrialist, Cordt und Partner Ges.m.b.H. (10%), a private Austrian investment company controlled by Dr. Herbert Cordt, MobilTel's Chairman, and MS Privatstiftung (40%), the Vienna-based private charity of Martin Schlaff and his family. BidCo agreed to pay EUR 1.2 billion MobilTel Holding GmbH for its 100% stake in MobilTel EAD, of which EUR 270 million (22.5% of the total acquisition price) will be re-invested by some of the existing Austrian shareholders of MobilTel Holding, while EUR 930 will be invested by the consortium of the following seven private-equity funds. [full story...] [INVbg]
Source: INVbg.
NATO Membership: Trade and Investment Opportunities in South-East Europe
June 30 - July 2, 2004 May 26, 2004 -- In line with the recent NATO enlargement, the American Chamber of Commerce in Bulgaria (AmCham Bulgaria) and the American-Hellenic Chamber of Commerce are pleased to introduce you to the status of modernisation of the armies and the reforms in the defence sectors in the South-East European countries, as well as the immediate advantages of doing business in the region. [full story...] [INVbg]
Greek billionaire financier holds top-level meetings in Bucharest
May 24, 2004 -- A delegation of top-level EFG Bank Group officials, headed by Greek billionaire Dr. Spiro J. Latsis, president of Geneva-based SETE SA and the EFG Bank Group, both members of the Latsis Group, met Ion Iliescu, the President of Romania, Adrian Nastase, the Prime Minister of Romania, and a number of ministers in Bucharest today, EFG Eurobank Ergasias SA said in a statement. Discussions included the Romanian privatisation programme and infrastructure development issues. Managed by the son of John Latsis, who handed over control of his huge marine, banking and oil empire in 1999, the Latsis Group has, among others, a presence in Romania's banking and real estate industries. More specifically, Athens-based EFG Eurobank Ergasias owns 53.25% of Romania's Banc Post (see below). David Watson was recently appointed Banc Post's new CEO. The former Managing Director of Piraeus Bank SA is an adviser to EFG Eurobank Ergasias' management on issues regarding the Greek bank's development in South-East Europe. Furthermore, LAMDA Development SA, an ATHEX-listed holding company investing in the development of land, sea and air infrastructure, is leveraging its presence in Greece and its neighbouring countries to play a leading role in the modernisation and development of South-East Europe. Together with Greece's Technical Olympic Group, the company established LAMDA Olympic Srl in Bucharest (see below). Romania, and especially Bucharest, was the first city in South-East Europe where LAMDA Development chose to expand its activities. A 50/50 joint-venture between LAMDA Development and the Technical Olympic Group, LAMDA Olympic is currently developing the Lake View Condominium project, a residential complex situated in a 9,000 m2 plot of land in Herastrau Park, in north Bucharest. The 23,300-m2 development includes 7 buildings with 93 luxury residential units and 6,550 m2 of underground space. The EUR-20-million investment is in the final phase of construction and will be delivered at the end of the first half of 2004. Pre-sales in the first quarter of 2004 have exceeded 40%. At the same time, LAMDA Olympic is exploring new development opportunities in Bucharest. SETE is fully owned by the Latsis Group, one of the largest privately-owned groups of companies in the world and an international real estate investor with substantial commercial portfolio holdings in London, Paris, New York, the Channel Islands, Geneva, Luxembourg and Athens. The current commercial portfolio exceeds 150,000 m2, all in prime metropolitan locations, and is let to a diversified mix of quality tenants. The Latsis Group has a joint venture in France with Societe Fonciere Lyonnaise (SFL) to own and manage a prime portfolio of CBD office properties. The Latsis Group is also engaged in a number of substantial development projects, including office buildings, residential complexes, tourism and leisure facilities, retail and mixed-use developments and infrastructure projects. SETE Procurement & Trading SA has a 51% interest in China's F.H.L. Cosmos Building Materials Shanghai Co. Ltd., a member of the F.H.L. Kiriakidis Group, a leading supplier of building materials, marble, granite and dry mortars based in the Industrial Zone of Drama, Greece. F.H.L. Cosmos Building Materials Shanghai Co. produces slabs, platforms, and tiles in its plant in Shanghai (Ind. P. Malu Shanghai). The rest of the shares are owned by Drama-based F.H.L. I. Kiriakidis Marble Granites SA (47%), the largest marble quarrying, processing and trading company in Greece, and Athens-based CosmoMarble SA (2%), a cluster company established by SETE who retains 40% of this company. The following leading Greek marble companies hold the remaining 60% of CosmoMarble: F.H.L. I. Kiriakidis Marbles Granites SA; Makedonika Marmara SA; Nea Marmarodomi S.P.E.; Skaris Marble SA; Marble of Thassos Filippides SA; Michelakis Marble SA; Xiropotamos Marmor - I.N.CH. Biros Co.
Citibank to release report on Cosmorom SA's financials and prospects on June 1, says Romania's Communication and IT Minister
May 21, 2004 -- Dan Nica, Romania's Minister of Communication and Information Technology, announced that Citigroup's Citibank will release its report on the financials and prospects of Cosmorom SA, the debt-ridden mobile subsidiary of RomTelecom SA, on June 1, 2004. Citibank was selected in February 2004 by Romanian fixed-line operator RomTelecom, a subsidiary of state-controlled Hellenic Telecommunications Organisation SA (OTE), to evaluate the best course of action for Cosmorom. The financial adviser's report will include an analysis of the possibilities of achieving a sale or attracting a strategic investor. The Romanian mobile player has so far failed to make the most of mobile opportunities in Romania, pulling in just 2% of a potentially lucrative market. Worse, the Romanian mobile failure has liabilities to the tune of EUR 190 million. A great deal of investment and localised marketing strategies are needed to make Cosmorom a success. OTE has realised that its COSMOTE model of success cannot be exported to Romania. In Greece, ATHEX-listed COSMOTE Mobile Telecommunications SA had a late start in the mobile market, but soon became market leader, ahead of rivals Vodafone-Panafon Hellenic Telecommunications Company SA and Nasdaq-listed STET Hellas Telecommunications SA (TIM), which were the first two companies to kick-start the country's mobile telephony market in 1992. COSMOTE is the only third entrant in Europe to become first in just three and a half years. Today, COSMOTE is the leading mobile operator in Greece. OTE controls the management of RomTelecom. Cosmorom's rivals are Telesystem International Wireless Inc.'s Connex (MobiFon SA), France Telecom's Orange and local success story, Zapp, which control the remaining 98% of the market OTE hopes to grab. Romania's mobile penetration is still approximately 28%. Despite the failure of Cosmorom, the country has a lot of potential and room for growth in the mobile telecommunications market. OTE's RomTelecom contract with the Romanian government has a clause that prevents closure of Cosmorom and, if no further investment is to be pumped in, a buyer or merger solution must be found, according to Nica. Most of Cosmorom's debts are owed to Intracom for equipment and services already supplied. The mobile player reportedly owes Intracom, the largest provider of telecommunications systems, information systems and defence electronic systems in Greece, EUR 117 million. On September 10, 2003, Intracom said in an announcement to the press that: "Following Intracom's age-long effort to find a solution via an amicable settlement, no conciliation agreement, acceptable by OTE, was reached. As a consequence, Intracom, having exhausted every negotiation margin and for reasons of reliability towards its shareholders, will -- within the following days -- resort to the contractually provided international arbitration via the International Arbitration Court of the International Chamber of Commerce in Paris. The appeal will be made against all companies of ÏÔÅ Group, according to the applicatory French law." Founded in 1977 and listed on the Athens Exchange (ATHEX) since 1990, Intracom has established a leading position within the markets of South-East European and the Middle East. With a presence in more than 50 countries, Intracom is now emerging as a global player. Its Romanian subsidiary, INTRAROM SA, is a telecommunication and electronic equipment manufacturer. The Intracom Group is also active in Romania through its affiliate Intralot SA, the fast-growing ATHEX-listed multinational specialised in tailor-made, turn-key IT solutions in the gaming and wagering business, and via the group's construction subsidiary, ATHEX-listed Intracom Constructions SA (INTRAKAT).
Mytilineos Holdings SA executives meet Minister of Finance of FYROM for talks on mines buy-out
May 19, 2004 -- Senior executives of ATHEX-listed Mytilineos Holdings SA, a diversified group of companies active in the mining, metallurgy, energy, defence, vehicle manufacturing and construction sectors, met today with Nikola Popovski, Minister of Finance of the Former Yugoslav Republic of Macedonia (FYROM), in Skopje for talks on a final contract for the acquisition of two mines in the neighbouring country. Talks between the two sides' engineers and lawyers will reportedly continue on Monday, May 24th. Mytilineos has offered EUR 650,000 and EUR 250,000 each for the mines. The company is active in FYROM since 1997 through MYVECT International, Skopje, a wholly-owned subsidiary of Mytilineos Finance SA, a Luxembourg-based sub-holding company that was established in 1996. Mytilineos Finance's main goals are to establish subsidiaries in countries where the Mytilineos Group operates and to facilitate access to global capital markets in order to secure financing for the operation of Mytilineos' subsidiaries. Being a holding company, Mytilineos Finance does not itself carry out any commercial activities, while its turnover derives from its subsidiaries' sales. Sources: ANA/N. Frangopoulos, Mytilineos Holdings SA, INVgr.
Serbia's Alumil YU Industry SA acquires majority stake in aluminium profile producer Alpro of the Republic of Srpska May 19, 2004 -- Cacak-based Alumil YU Industry SA, the wholly-owned Serbian subsidiary of Greece's Alumil Milonas Group, announced on May 18th that it has acquired just over 75% of aluminium profile producer Alpro A.D. Vlasenica of the Republic of Srpska (Bosnia and Herzegovina) for approximately EUR 1.35 million. An additional EUR 5 million will be invested in modernising the plant and increasing its productivity. Alpro is one of the leading companies in the production of aluminium profiles in former Yugoslavia. Alpro is ISO 9002 certified and is currently in the process of embracing the ISO 14001 international standard on environmental management, which is often seen as the cornerstone standard of the ISO 14000 series. The Alpro aluminium profile extrusion plant was built between 1977 and 1982. Production commenced in the beginning of 1983. Eight years later, when the company was privatised, 29.796% of the company's shares were owned by the state, while 70.204% of the share capital was owned by private investors. Alumil YU Industry acquired a majority stake in Alpro by initially buying Alpro shares on the Banja Luka Stock Exchange (BLSE) and through a private placement. Following that, the Kilkis-based aluminium extrusion and branded profile systems group decided to make a public offer to purchase Alpro's outstanding shares. Through this public offer, the Alumil Milonas Group, one of the largest producers of its kind in Europe, initially secured 61% of the shares and today controls, directly and indirectly, more than 75% of Alpro's share capital. Alpro has an annual production capacity of 10,000 tonnes and owns approximately 33,000 m2 of land, of which about 13,100 m2 covers an industrial area with production units, warehouses and offices. The company's wide range of aluminium profile products are mainly sold to Balkan markets. Alumil is the major sponsor of the 10th Thessaloniki Forum (see below).
10th Thessaloniki Forum to be held on May 25 & 26, 2004 at the Hyatt Regency Hotel
May 18, 2004 -- The American-Hellenic Chamber of Commerce and the Federation of Industries of Northern Greece are organising the 10th Thessaloniki Forum, to be held May 24 & 25, 2004 at the Hyatt Regency Hotel in Thessaloniki. This year's Forum will be organised under the auspices of the Hellenic Ministry of Foreign Affairs and in co-operation with the Hellenic Foundation for European and Foreign Policy (ELIAMEP) and the Representation of the European Commission in Greece. The Thessaloniki Forum has become the leading annual event in South-East Europe where the private and public sectors interact to review development policy, explore investment opportunities and define strategic goals in areas of regional co-operation. More than 600 government delegates and business representatives convene to initiate and evaluate development and investment programmes in the rapidly-evolving South-East European environment. Economic co-operation and stabilisation in the region are promoted at the conference through the official participation of South-East European countries, the European Union, United States and Russia. To mark the tenth year of the Thessaloniki Forum, its organisers aim to further improve regional ties and to asses the Forum’s achievements in South-East Europe. The Forum’s task is to find the best means of defining new roles resulting in collective benefit for South-East Europe. Conference delegates will have the opportunity to exchange views with members of state delegations, senior business executives and representatives of leading international organisations. Alumil (major sponsor), Coca-Cola Hellenic Bottling Company SA (sponsor), Intracom SA (supporter) and Aegean Airlines (official carrier) are sponsoring the 10th Thessaloniki Forum, while Alpha, ERT3, International Herald Tribune-Kathimerini, Angelioforos and Makedonia are the Forum's communication sponsors.
Bulgaria's central bank allows EFG Eurobank Ergasias SA to acquire indirectly up to 100% of Bulgarian Post Bank AD May 17, 2004 -- The Bulgarian National Bank, the country's central bank, today cleared the agreement that EFG Eurobank Ergasias SA reached with American Life Insurance Company (ALICO) to acquire from the latter its 50% stake in Cyprus-based ALICO/CEH Balkan Holdings Ltd. (ACBH), owner of 91.71% of the shares of Bulgarian Post Bank AD, the fifth-biggest bank bank in Bulgaria. This agreement was reached on December 23, 2003. "BNB allows EFG Eurobank Ergasias to acquire, indirectly, up to 100% in Bulgarian Post Bank, following the direct acquisition of the 50% stake of the ALICO/CEH Balkan Holdings Ltd. consortium," BNB said in a statement. Given that the ATHEX-listed Greek bank already holds 50% of ACBH, through this acquisition the bank takes full control (100%) of ACBH, with this move EFG Eurobank Ergasias gets management control of both companies. Bulgaria's DSK Bank, the state-owned Bulgarian Postal Service, the state-owned Bulgarian Telecommunications Company (BTC) and the National Palace of Culture in Sofia are minority shareholders in Bulgarian Post Bank with 5.03%, 1.4%, 1.4% and 0.46%, respectively. Advent International Corp. of the U.S. is currently in the process of acquiring a 65% stake in BTC, through Viva Ventures Holding GmbH, an Austrian-registered vehicle (see below). Bulgarian Post Bank is already one of the most dynamic credit institutions in the country. At the end of September 2003, the bank's total assets were BGN 835 million -- a market share of about 5% -- according to BNB data. Bulgarian Post Bank's credit portfolio rose by 42.4% on the year to BGN 571.4 million (EUR 293 million) during the first quarter of 2004, while the bank's operating earnings stayed unchanged at BGN 2.8 million. At the end of 2003, Bulgarian Post Bank maintained 29 branches and 91 representative offices throughout the country. EFG Eurobank Ergasias is also active in Greece, Romania and Serbia.
Bulgaria's GloBul to invest over EUR 1 million to develop and expand nationwide retail chain
May 15, 2004 -- GloBul, Bulgaria's second largest mobile phone operator, said on May 13 it would invest over EUR 1 million to set up and develop its own retail chain. The investment, to be made by Cosmo Bulgaria Mobile EAD, better known as GloBul, is the company's next step in an effort to expand its retail network that was set up in the middle of 2003. GloBul will open retail centres in Vidin, Haskovo, Dupnitsa and other Bulgarian cities in addition to the already existing outlets. GloBul has 1,148,000 subscribers, approximately 773,000 of which are users of the company's pre-paid services. GloBul is the second-largest player in the local mobile phone sector, while MobilTel AD, or M-Tel for short, is Bulgaria's market leader. A total of 629,600 customers used GloBul's pre-paid services at the end of 2003. This number increased by 16% in the first quarter of 2004. GloBul's network covers 96% of Bulgaria's population and 77% of the Bulgarian territory. From the day that GloBul received Bulgaria's second GSM licence until the end of 2003, the company has invested EUR 450 million, according to Cosmo Bulgaria Mobile's parent company. Cosmo Bulgaria Mobile's 2003 revenues reached EUR 99.4 million, an increase of 113.8% year-on-year, on earnings before tax of EUR 10.2 million. Launched in September 2001 after Greece's state-run Hellenic Telecommunications Organisation SA (OTE) won a 15-year, GSM 900 / 1800 mobile telephony license in Bulgaria for USD 135 million, Cosmo Bulgaria Mobile is a wholly-owned subsidiary of OTE and is managed by ATHEX-listed COSMOTE Mobile Telecommunications SA, the mobile subsidiary of OTE and Greece's leading mobile operator. Cosmo Bulgaria Mobile operates the second GSM mobile phone network in the country. The company's revenues rely heavily on a nationwide GloBul distribution network consisting of Germanos Telecom Bulgaria SA, Office 1 Superstore, da,da, Global Net Ltd. and the company's own GloBul stores. In March 2004, these retail chains in the mobile phone sector operated 46, 40, 25, 15 and 15 retail outlets in Bulgaria, respectively, according to figures released by Germanos. In comparison, in March 2004, MobiTel operated a network of 120 stores. Germanos Telecom Bulgaria SA has 46 stores in 26 cities (March 2004) throughout the country. By the end of 2004, the company plans to expand this network to 50 retail outlets. Germanos Telecom Bulgaria is a 90%-owned subsidiary of Greece's Germanos Group, which operates more than 580 retail outlets in six countries, namely 290 in Greece, 146 in Poland, 66 in Romania, 46 in Bulgaria, 18 in Cyprus and 20 in the Former Yugoslav Republic of Macedonia (FYROM). Between 17% and 18% of Germanos SA's total sales are derived from activities overseas, according to Yiannis Karayiannis, the company's Managing Director. In November 2003, he announced that Germanos expects this figure to increase to 30% by 2005. [full story...] [INVbg]
Coca-Cola Hellenic Bottling Company Bulgaria AD receives mineral spring concession
May 14, 2004 -- Bulgaria awarded a 20-year concession on a mineral water spring to the Bulgarian subsidiary of Athens-based Coca-Cola Hellenic Bottling Company SA. Coca-Cola Hellenic Bottling Company Bulgarian AD has to invest at least BGN 100,000 in setting up production facilities under the concession deal, the government press office said. The company has to pay EUR 2.3 per cubic metre of mineral water but no less than USD 17,500 per annum. The mineral spring, located approximately 12 km. off the city of Targovist, in North-West Bulgaria, has an annual outflow of 10,000 cubic metres. Sales of bottled mineral water posted the highest year-on-year rise among all soft drinks in Bulgaria last year, a local trade lobby group said. [full story...] [INVbg]
Chipita International SA to acquire praline producer Cream Line SA
May 14, 2004 -- Chipita International SA, the Greek packaged flour-based snacks producer, is reportedly to have paid EUR 2.67 million to increase its stake by 15% in Cream Line SA, the praline maker, in view of securing a total majority stake of 57.6%. The stake will be acquired from Emporiki Venture Capital Emerging Markets Ltd. Cream Line is a rapidly-expanding company with modern production facilities in northern Greece, Bulgaria, and Romania (Cream Line Romania SA). Its core line of products are hazelnut praline and wafer-type biscuits with hazelnut praline filling. The company has also expanded its product range by producing chocolates in elegant gift boxes, better known as the "Da Vinci" line. Cream Line's "Finetti" hazelnut spread, wafer rolls and breadsticks enjoy a strong brand recognition and awareness among consumers in many Eastern European countries. The "Finetti" line of products is exported to more than 35 countries world-wide. Cream Line reported revenues of EUR 20.7 million in 2003. The news comes at a time that Chipita East Europe Ltd. is securing clearance from the Bulgarian competition authorities for Chipita's acquisition of Royal Foods Holding (RFH) in Bulgaria for EUR 15 million (see below).
Intralot SA files sole bid to run Bulgaria's state lottery
May 13, 2004 -- Intralot SA, member of the INTRACOM group, has placed the sole indicative bid in a public tender to manage Bulgaria's state lottery, Bulgaria's Finance Ministry revealed yesterday. The contract will be valid for ten years, while direct negotiations with the bidding candidate will commence next week, ministry officials told a news conference in Sofia. "One of the key criteria at the talks will be a serious improvement of the lottery's revenues," the head of the Bulgarian tender commission said. Intralot is a leading supplier of integrated gaming and transaction processing systems, innovative game designs and value added services to state-licenced gaming organisations and financial services providers world-wide. The company pledged to increase the lottery's gross revenues from BGN 5 million last year to at least BGN 32 million at the expiration of the ten-year contract. Intralot holds a 49% stake in Bulgarian soccer bookmaker Eurofootball. Furthermore, the company has signed a contract for the supply, operation and technical support of an on-line lottery system with the Bulgarian Sports Totalisator (BST). In order to implement the project, Intralot established BILOT EOOD, its Bulgarian subsidiary which provides system operation and support services. Last month, the ministry in charge of the country's state lottery launched a fresh tender to select a manager, after the first attempt failed in December 2003. Intralot was one of the bidders that competed for landing the contract last year, however the finance ministry decided to cancel the first procedure on December 9th, 2003, stating that there were too little eligible bidders. Only two of the four bidding companies had met the tender requirements, while the law required at least three, the ministry said in a statement U.S.-registered Scientific Games International, Intralot, Austrian gaming operator Oesterreichische Lotterien and Sweden's EssNet filed non-binding bids for Bulgaria's state lottery in September. Approximately 11% of Bulgaria's state lottery proceeds are being distributed to the country's health care, education, culture and social sectors. [full story...] [INVbg]
TelePassport Hellas SA, Greece's largest private sector fixed telephony services carrier, eyes peers in Romania or Bulgaria
May 7, 2004 -- TelePassport Hellas SA, one of the biggest alternative telecom providers in Greece, is eyeing peers in Romania and Bulgaria, according to Chief Financial Officer Nektarios Tzortoglou, who spoke to the Athens News on the sidelines of KPMG's Third CFO Forum. "It is early days yet, but we could look at acquiring something in Romania or Bulgaria," he said. Tzortoglou was one of 400 senior executives at KPMG's forum on April 27 & 28. TelePassport Hellas was founded in 1998 with the purpose of offering innovative and qualitative telecommunications services to its customers. The fixed-line telephony services the alternative provider offers are based on cutting-edge telecommunications and computing technologies. TelePassport offers a pan-Hellenic coverage via active telecommunications nodes (POPs) throughout Greece. In addition, TelePassport maintains a privately-owned node in Frankfurt am Main, Germany achieving direct interconnection with major worldwide carriers, thus ensuring high quality international communications. TelePassport holds a special Pan-Hellenic license to provide fixed voice telephony telecommunication services from the National Telecommunications and Postal Commission (EETT) via the number 1787 and has signed an interconnection agreement with OTE. The company's network combines the advantages of digital audio and image transmission technology, using the Clarent technology of Verso Technologies, Inc. (Nasdaq: VRSO), an integrated communications solutions company, installed at strategic locations throughout Greece. TelePassport also has a subsidiary in Cyprus, TelePassport Cyprus Ltd. In Greece, TelePassport Hellas is on par with the other big contender for the telco market in Greece, Tellas. Challengers have levered approximately 9% of OTE's domestic market share. Tellas is a fairly new player in the Greek telecommunications market. The company's shareholders are Wind Telecomunicazioni SpA (with a controlling 51.1% stake), the leading Italian alternative fixed, mobile operator and Internet Service Provider (ISP) and the fastest-growing telecommunications provider in Italy, and PPC SA - Public Power Corp. (48.9%), the dominant state-run Greek electrical utility. Wind PPC Holding NV owns 100% of the shares of Wind. Sources: Athens News, Telepassport Hellas SA.
Balkans provides optimism for construction company Mesohoritis Bros. SA April 30, 2004 -- Mesohoritis Bros. SA, the Thessaloniki-based, ATHEX-listed Greek construction firm, has over three-quarters of a million euros' worth of contracts it is expecting to sign for Balkans projects, including in Albania, the Former Yugoslav Republic of Macedonia (FYROM), Bulgaria and Romania. Athanassios Mesohoritis, its chairman and managing director, sees the neighbouring region as being the area with development potential. "We are not merely a Greek firm, but a European player," he said. "We are proactive in getting contracts abroad and not just subject to the volatility of the Greek market. Whatever happens further on down the line, we will go all out to protect our 130 employees and their families. In fact, I am very optimistic about the company's post-Olympic growth prospects," he said. The company has a market capitalisation of some EUR 13 million. [full story...] [premium content]
FYROM-based marble quarrying and processing company F.H.L. Mermeren Kombinat AD - Prilep goes public
Stock symbol: MERKO April 28, 2004 -- FYROM-based F.H.L. Mermeren Kombinat AD - Prilep is going public, April 28-30, 2004 and will be the first company in South-East Europe to be listed on the Greek Market for Emerging Capital Markets (EAGAK) [premium content], a newly-launched bourse that was established in 2001. EAGAK is one of the four organised capital markets that form the Athens Exchange (ATHEX) -- the Main Market, the Parallel Market, the New Stock Market (NEXA) and EAGAK. Securities listed on the organised EAGAK capital market are associated with companies based in the Balkans or South-East Europe, but not in the euro-zone. The bourse will operate with the support of the Thessaloniki Stock Exchange Centre (TSEC). F.H.L. Mermeren Kombinat is offering 446,380 Greek Depository Receipts (GDR, in Greek also known as "Ellinika Pistopiitika" or "ELPIS"), which are tradable certificates issued by Greek banks that represent shares of companies having their registered offices in emerging market countries, to private and institutional investors through an Initial Public Offering (IPO), while 22,320 Greek Depository Receipts are to be privately placed. The IPO proceeds are estimated to reach EUR 3.1-3.5 million, which values the company between EUR 31.4-35.2 million (estimated market capitalisation). F.H.L. Mermeren Kombinat, located in Prilep, in the South-West of the Former Yugoslav Republic of Macedonia (FYROM), is a marble quarrying and processing company established in 1946. The firm was founded as Neometali and in 1995 changed its legal name to F.H.L. Mermeren Kombinat AD - Prilep. It has a number of long-term licences to exploit several marble quarries, and produces Bianco Sivec (White Sivec), a registered and world renowned brand. F.H.L. Mermeren Kombinat is a member of the F.H.L. Kiriakidis Group, a leading supplier of building materials, marble, granite and dry mortars based in the Industrial Zone of Drama, Greece. ATHEX-listed F.H.L. I. Kiriakidis Marbles Granites SA, the largest marble company in Greece and a member of the F.H.L. Kiriakidis Group, is the majority shareholder of F.H.L. Mermeren Kombinat. In 2002 F.H.L. I. Kiriakidis was the world's largest producer of premium-quality white marble through its operations at F.H.L. Mermeren Kombinat and it aims further to increase its sales, based on the quality and size of the reserves in Prilep, using the present investment programme as well as its extensive and expanding sales network. F.H.L. Mermeren Kombinat produces slabs, platforms, tiles, and special dimensions. The company maintains offices in the capital, Skopje. In 2002, 36% of F.H.L. Mermeren Kombinat's total revenues were derived from exports, Greece being the company's number-one export market. Greece is the world's ninth largest producer of marble with a market share of 2.9%. The F.H.L. Kiriakidis Group has six plants world-wide -- four in Greece (Drama, Prosotsani - Drama, and Volakas - Drama), one in FYROM (Prilep), and one in China (Shanghai) -- and operates four quarries in two countries (Thassos - Kavala, Volakas - Drama, and Nevrokopi - Drama in Greece, and Prilep in FYROM). F.H.L. Mermeren Kombinat is planning to use EUR 2.7 million of its IPO proceeds to reduce its bank debt, while EUR 0.3 million of the proceeds will be invested in two new Atlas Copco air-compressor machines, which will be used in the company's quarries. [download the IPO memo...] [premium content]
Greek PM Karamanlis addresses Balkan leaders in Sarajevo Expresses desire for co-operation will all neighbouring Balkan nations April 21, 2004 -- Costas Karamanlis, Greece's Prime Minister, expressed his desire for co-operation with all the neighbouring Balkan countries, addressing the 7th Summit Meeting of the South-East Europe Co-operation Process (SEECP), which opened earlier today in Sarajevo. Karamanlis explained that co-operation was a priority of his government, as well as himself, personally, stressing that such co-operation must be based on a future founded on the common European values and not on the past, and adding that the problems of the past should be left to the historians, whereas the challenges of the present and future required specific answers and viable solutions from the politicians. The Greek prime minister condemned the destruction and vandalism of cultural monuments, churches and religious sites during the recent clashes in Kosovo, recalling the EU summit condemnation of ethnic violence on March 26 as well as the EU summit statement in April 2002 in Albania, and expressed hope that the Kosovo leadership would abide by the acquis formulated in the process for co-operation in South-East Europe. Karamanlis further welcomed FYROM's application to join the European Union, and congratulated Bulgaria and Romania on their NATO membership. The Greek Premier stressed that despite the steps that have been made in the Balkans, the situation remained fragile in many sectors, and referred to organised crime, prostitution, lack of infrastructure, the need for the safe return of refugees, and the need to develop the transport, energy, telecoms and water-supply sectors, as well as for macro-economic stability, so as to attract foreign investments and combat unemployment. Karamanlis had a 25-minute talk today with his Turkish counterpart, Recep Tayyip Erdogan, on the sidelines of the SEECP summit in Sarajevo. The Turkish prime minister will be visiting Athens officially on May 6-7, according to Greek government sources. Source: ANA.
Proodeftiki submits bids for two construction projects in Romania
April 21, 2004 -- SC Proodeftiki Construct SRL, a Bucharest-based construction subsidiary of ATHEX-listed Proodeftiki Technical Company SA, announced it has submitted offers for two road construction projects with a total budget of EUR 25 million in Romania. Should both projects be awarded to Proodeftiki, the Athens-based construction group will have a backlog of EUR 120 million. Established on September 10, 1998, SC Proodeftiki Construct, a wholly-owned subsidiary of by Proodeftiki, is specialised in the general construction of buildings -- such as residences, industrial and commercial facilities, public buildings, educational institutions, medical buildings -- and the execution of engineering construction works, such as bridges and aquaducts, tunnels and underground crossings, industrial constructions and prefabricated buildings. The company has a share capital of 10 million Lei. In February 2003, Romania's National Administration of Roads (NAR) awarded SC Proodeftiki Construct a EUR 14.5-million public road project to build part of the national highway between the Romanian cities of Baru and Hateg. This 26-km. highway construction project is funded by the European Investment Bank (EIB). The various transport modes in Romania will have to cope with growing mobility in an enlarged European Union. The various Romanian infrastructure projects financed by the EIB will mean more efficiency, safety and comfort for users of road, rail and port infrastructure at various locations throughout the country, as well as for users of public urban transport in the capital. The EIB is the European Union's financing arm and provided its first loans in Romania in 1991. Proodeftiki is also active in Bulgaria, through its wholly-owned subsidiary Proodeftiki Construct EOOD.
Piraeus Bank Romania SA close to acquiring a local bank
Fails to net Romanian tennis star's bank April 20, 2004 -- Piraeus Bank Romania SA, member of the Piraeus Bank Group, is close to acquiring a Romanian bank, according to Greek press reports. Earlier this month, one time tennis star Ion Tiriac, founder and main shareholder of Banca Comerciala "Ion Tiriac" SA, said he would back out of the sale of a majority stake in Banca Tiriac, citing Banca Tiriac's positive financial results in 2003 as the main reason for his change of heart. Banca Tiriac specialises in the retail, large corporate and SME market segments. Piraeus Bank evaluated Banca Tiriac in depth and was hoping to acquire it. Meanwhile, Piraeus Bank has also expressed interest in acquiring Banca Comerciala RoBank SA in case it would fail to purchase Banca Tiriac. Hungary's OTP and FMO of The Netherlands also seem to be interested in acquiring Banca Comerciala RoBank, a privately-owned Romanian bank that mainly focuses on corporate clients, according to sources. Established in 1995, Piraeus Bank Romania is licenced to conduct commercial banking activities in the country. It was incorporated into the Piraeus Bank Group in mid 2000 following the group's acquisition of a 99.98% stake in Romania's Banca de Credit Pater. On December 31st, 2003, Piraeus Bank Romania had six branches -- three in Bucharest, and one each in Timisoara, Tirgu Mures and Ploiesti. The bank plans to grow its local branch network organically, but is also interested in making an acquisition in Romania. Its branch network in Romania has expanded from two in 2000 to seven presently, while Piraeus plans to open up to 15 more branches in the country by the end of 2005. At the end of December 2003, Piraeus Bank Romania's assets were EUR 176 million, while pre-tax earnings totaled EUR 2.17 million. The bank's market share in Romania, in terms of assets, reached 1.2% at the end of 2003, up from 0.2% in December 1999. The Piraeus Bank Group is also active in the leasing sector in Romania through its local subsidiary Piraeus Leasing Romania, which was established in December 2002.
Mothercare master franchisee E. Papayannis Sons SA enters Romanian market
April 14, 2004 -- E. Papayannis Sons SA, the exclusive master franchisee of the Mothercare brand in Greece and the Balkans, announced that it established SYSMEROM COM SRL in Bucharest, the company's first subsidiary in Romania. SYSMEROM COM's activities include import, trade and distribution of clothing and accessories as well as representation and cooperation with local and international companies with similar activities. I. Kloukinas - I. Lappas SA, the ATHEX-listed construction group, holds a 80% stake in E. Papayannis Sons since 1999. Founded in 1958, E. Papayannis Sons is mainly involved in exclusively importing and retailing the famous Mothercare products that cater to expecting mothers and parents of young infants. E. Papayannis Sons' retail network growth and development
The company also owns real estate property in Athens, including two buildings of 2,191 m² on Ermou Street -- the main shopping street in central Athens -- as well as two buildings in Tavros, which are all currently being used by the company. Mothercare works with its franchisees to build profitable retail businesses around the world. Mothercare's overseas franchise business currently operates through 182 stores in 29 countries, primarily in Europe, the Middle East and the Far East.
Call for expression of interest: 5th International Venture Capital Forum, Athens, June 16th & 17th, 2004 Business people, researchers, policy makers from South-East Europe and the East Mediterranean, and in particular from Bulgaria, Cyprus, FYROM, Greece, Israel, Romania, Serbia and Montenegro are invited to attend, present their business ideas and discuss venture opportunities in dedicated bilateral meetings. April 13, 2004 -- The Hellenic Centre for Investment (ELKE), Greece's New Economy Development Fund (TANEO), the Innovation Relay Centre HELP-FORWARD in co-operation with the Hellenic Venture Capital Association are inviting entrepreneurs and researchers having ambitious and innovative business plans to participate in bilateral business meetings with Greek and international venture capital firms during the 5th International Venture Capital Forum. Held under the auspices of the Hellenic Ministry of Economy and Finance, the event will take place in the Hotel Grande Bretagne in central Athens on June 16th & 17th, 2004. The 5th International Venture Capital Forum is a unique two-day event dedicated to raising financing for ambitious and dynamic entrepreneurs, business oriented researchers and new technology-based firms in South-East Europe. The event also provides a forum for institutional and other investment professionals to meet with policy makers, entrepreneurs, academics and researchers for an open exchange of views and ideas. The 5th International Venture Capital Forum is now the largest international private equity forum in South-East Europe. Venture capital firms are requested to present their availability and interest to explore the Event Portfolio and new entrepreneurs and researchers are invited to submit their business plan the latest by May 14th, 2004. For the first time, the "Best Business Plan Prize" will be awarded to three business plans selected by the VCs.
Greek investments in Bulgaria reach EUR 3.2 billion Greece remains Bulgaria's biggest foreign investor by far April 9, 2004 -- Greek investments in Bulgaria totaled USD 3.2 billion so far, while 1,100 Greek companies are currently active in Greece's neighbouring country, according to Panayiotis K. Koutsikos, President of the Hellenic-Bulgarian Chamber of Commerce and Industry. These investments have created 85,000 jobs in Bulgaria, a country which enjoyed a healthy economic growth of 4.3% in 2003. The country attracted an all-time high of USD 1.36 billion in foreign direct investment (FDI) in 2003, up from USD 907.7 million in 2002. According to Koutsikos, who is also Chairman of Ergo, Co-President of the Greek-Turkish Business Council, Chairman of the Greek-Turkish Chamber of Commerce and General Secretary of the Athens Chamber of Commerce and Industry (ACCI), approximately USD 400 million annually are transferred to Greece's neighbouring country by Bulgarians working in Greece. Greek tourists add EUR 130 million to Bulgaria's tourism revenue each year, while Greek students spend a total of USD 120 million in the country. Other leading foreign investors in Bulgaria are Germany, Italy, Switzerland and Austria. Useful links:
Intracom SA sets up new subsidiary in Bulgaria
GLOBAL - NET SOLUTIONS EOOD (Ltd.) April 8, 2004 -- Intracom SA announced today that it proceeded with the incorporation of a 100%-owned Bulgarian subsidiary, GLOBAL - NET SOLUTIONS EOOD (Ltd.). With an initial share capital of BGN 390,000, divided into 39,000 shares with a nominal value of BGN 10 per share, the new company is based in Sofia. The company's main activity will be the supply, trading and provision of mobile telephony items and services, the establishment and operation of industrial units producing every kind of electronic and electromechanical equipment and material, software development for new telecom systems and computers, provision of telecommunications services to the general public, and, broadly speaking, commercial activity both inside and outside Bulgaria.
Intracom is already active in Bulgaria through its subsidiaries BULFON SA - Bulgarian Telecommunications and Informatics Corporation (specialised in information systems and telecommunications) and Intracom Bulgaria (involved in telecommunications and information systems in Bulgaria). Established in 1995, Intracom Bulgaria designs, develops, manufactures and supports hardware and software systems for advanced telecommunications, electronics and data-processing applications in Bulgaria. Founded in 1977, Intracom is the largest provider of telecommunications systems, information systems and defence electronic systems in Greece. Listed on the Athens Exchange since 1990, Intracom has established a leading position within the markets of South-East European and the Middle East. With a dynamic presence in more than 50 countries all over the world, Intracom is now emerging as a global player.
General Frozen Foods SA to invest EUR 6-8 million in Bulgarian market
April 5, 2004 -- General Frozen Foods SA (formerly Barba Stathis), Greece's leading producer and trading company of frozen foods and vegetables, said today it plans to buy out its Bulgarian subsidiary General Frozen Foods OOD. General Frozen Foods will acquire the outstanding stake of General Frozen Foods' capital for BGN 340,000 (EUR 174,900), aiming to strengthen its position in Bulgaria. General Frozen Foods owns three real-estate properties in the country. The buy-out agreement is expected to be signed in the first half of April 2004. After the move, General Frozen Foods will change its Bulgarian subsidiary's name to Agroteam EOOD and will increase its capital by BGN 225,400 (EUR 116,500). General Frozen Foods, which in Greece is known for its Froza and Barba Stathis ("Uncle Stathis") trademarks, manufactures and sells frozen foods and vegetables. Listed on the Athens Exchange (ATHEX), General Frozen Foods is a 60.38% subsidiary of Delta Holding SA. General Frozen Foods plans to set up another subsidiary in Bulgaria, which will commence operations in May 2005. [full story...] [premium content]
Genesis Pharma SA wants to grow in South-East Europe March 23, 2004 -- Genesis Pharma SA, a pharmaceutical company specialising in biotechnology products, is looking to acquire Greek companies in the biotechnology sector, its Managing Director, Costas Evripedes, told the Athens News weekly on the sidelines of the International Forum on Corporate Social Responsibility (CSR) held by Economist Conferences on March 22nd at Ledra Marriott Athens. "We have operations in Slovenia, Romania, Bulgaria and Croatia, but would not be ready to expand to those countries through acquisitions just yet," he said. "Our primary goals as regards mergers and acquisitions is to acquire companies in Greece, and that process will begin once we have successfully listed on the Athens Exchange (ATHEX)," he continued. "We expect the listing to go through a little later this year," he added. Athens-based Genesis Pharma has over 120 employees and a EUR 76 million turnover. The company specialises in the marketing, sales and distribution of specialised pharmaceutical products, primarily from biotechnological research, and has exclusive agreements with a range of leading US and European companies. Genesis Pharma has established affiliated companies and subsidiaries in order to strengthen its main role in distributing innovative products in markets outside its domestic market, Greece. These include Genesis Pharma (Cyprus) Ltd., Cygen BV -- a wholly-owned subsidiary of Genesis Pharma in The Netherlands -- and representative offices in Romania and Bulgaria. The Balkan area offers an exceptional opportunity for Genesis Pharma to expand its operations especially when some of these countries, i.e. Bulgaria and Romania, will join the EU.
Bulgaria:
Romania:
Chipita to acquire Bulgaria's second largest snack producer
Creating Bulgaria's largest trading and manufacturing group of branded packaged bakery products and snacks with sales in excess of EUR 50 million and an annual production capacity of 45,000 tonnes March 17, 2004 -- Cyprus-based Chipita East Europe Limited signed a Memorandum of Understanding today with the shareholders of Bulgaria's Royal Foods Holding (RFH) group in view of Chipita East Europe's acquisition of RFH's activities, i.e. buildings, machinery, land and trademarks. Royal Foods Holding produces and distributes swiss rolls, layer cakes, mini rolls and cake-bars in Bulgaria. RFH has a market share of 85% in Bulgaria's cakes market. RFH's revenues in 2003 reached EUR 13.5 million, approximately half of which was exported to East Europe, mainly to Romania, Hungary and the former Yugoslav republics. There are only a few manufacturers of snacks in Bulgaria. The largest snack producer in the country is Chipita Bulgaria SA, while RFH is the second-largest player in the Bulgarian market. Consumption and demand for such products are growing in Greece's neighbouring country. Once the final acquisition agreement will be cleared by the relevant authorities, Chipita will create Bulgaria's largest trading and manufacturing group of packaged flour-based products and snacks with annual sales in excess of EUR 50 million and an annual production capacity of 45,000 tonnes. The final agreement is expected to be signed in May or June 2004. Chipita International SA's Central and Eastern European holdings are held through a wholly-owned Cypriot company, Chipita Participations Ltd., which in turn holds 51.33% of Chipita East Europe Ltd. Other shareholders in this company include Delta Holding SA (12.5%), the Saudi-based The Olayan Group (4.5%), and the venture capital companies Global Finance SA (29%) and Emporiki Venture Capital SA (2.5%). Olayan Investments Company Establishment (OICE), based in Glyfada, Athens, is the parent company and principal controlling entity of The Olayan Group, one of the world's largest investment groups. As an offshore company it cannot conduct onshore business in Greece, but it does have holdings in:
Chipita East Europe operates seven joint-venture manufacturing facilities, four of which are located in Central and Eastern Europe -- Chipita Bulgaria, Chipita Romania, Chipita Poland and ZAO Chipita, Russia (all wholly-owned subsidiaries). In each of these markets, Chipita is by far the market leader with a 60%-plus market share. Apart from these four countries, Chipita distributes its products either through the company's own distribution companies -- Chipita Hungary and Chipita Czech Republic (both wholly-owned subsidiaries; the local distributor/agent in Hungary was acquired in mid 2002) -- or through representatives in Albania, Serbia and Montenegro, Bosnia, Croatia, Slovenia, Slovakia, Ukraine, Lithuania, Latvia and Estonia. Chipita also also has joint-venture production facilities in Mexico (Chipiga SA, a subsidiary of Latin American Snackfoods Ltd. Aps which is 35% owned by Chipita International and 65% by Frito-Lay) and Portugal (Chipima SA, Lisbon; 40% Chipita International; 60% Matutano, a subsidiary of the PepsiCo group of companies). In Germany, Chipita Germany GmbH (formerly Food & Snack Spezialitäten); is 51% owned by Chipita International and 49% by Eng. Altmann. The company has a wholly-owned subsidiary in Italy, Chipita Italia Sr.l. In Ukraine, Chipita has two subsidiaries, TEO PLUS and TEO FUND, which are 100% owned by Chipita Ukraine Cyprus Ltd., a wholly-owned subsidiary of Nicosia-based Chipita Participations. In Egypt, Chipita International participates in EDITA S.A.E., an affiliated Egyptian company in which the Athens-based firm owns 25% with EDIC & N. Bertzi holding the remaining 75%. In Bulgaria, Chipita completed the extension of its Sofia plant, where four production lines -- two for mini-croissants, one for croissants and one for bake rolls -- are already installed. In Romania, a new plant with three production lines commenced operations in Bucharest in August 2003. Established in 1973, Greek packaged flour-based snacks manufacturer Chipita International was originally a salted snacks producer and has grown remarkably over the past 31 years. In 1991, the company entered the packaged croissant market, while in 1994 Chipita International went public and was listed on the Athens Exchange (ATHEX). Global Finance SA, Chipita International's strategic partner in CEE Since 1996, Athens-based Global Finance SA, the leading private equity and venture capital management firm in Greece and South-East Europe, has been Chipita International's partner in Central and Eastern Europe, initially through Global Finance's Black Sea Fund LP, which began to make investments in 1999 and now has a total of 13 participations.
In addition, Delta Holding participates in Chipita's international activities since 1998. Delta currently has a 12.5% stake in Chipita Eastern Europe Ltd. through its 100%-owned, Cyprus-registered subsidiary Delta Food Holdings Ltd. Introduction of Chipita's products in Russia Chipita Russia (Cyprus) Ltd. owns 100% of ZAO Krasnoselskaya (Red October) and ZAO Eldi, which are both based in St. Petersburg. ZAO Eldi owns a bakery plant producing snacks such as cakes, swiss roles, etc. in St. Petersburg, while ZAO Krasnoselskaya is a subsidiary firm handling the distribution and trade of ZAO Eldi's products. Both companies were acquired by Chipita Russia in January 2001 for USD 9 million, paid EUR 6 million to upgrade the facility, and is investing EUR 12 million in two new lines to produce bake rolls and cream-filled cupcakes (Madeleines). The company plans to gradually introduce new products through local production in order to increase its range of products in the market. Chipita's association with PepsiCo in Russia Chipita used to collaborate with PepsiCo's Frito-Lay, the world's largest producer and distributor of snack foods, on its distribution in Russia, but ended this in 2003. In October 2002, Frito-Lay opened a 18,200-square-metre plant in Kashira, approximately 100 km. south of the Russian capital and one of the country's prime potatoe farming regions. It is Frito-Lay's first factory in Russia and the company has invested USD 60 million in the plant. Some say Russian czar Peter the Great brought the potatoe to Russia in 1702. According to media releases earlier in 2004, Chipita was once more exploring re-establishing links with PepsiCo. This association, through Frito-Lay, is still used for exports to the Baltic states.
Delta Ice Cream SA expands in Serbia and Montenegro March 11, 2004 -- Delta Ice Cream SA, a subsidiary of the Greek food processor Delta Holding SA, announced today that its 100%-owned subsidiary Delta International Holdings SA, based in Luxembourg, acquired Napredak AD's 10.09% equity stake in Serbia's Delyug SA, raising its total stake from 88.98% to 99.07%. Furthermore, Delta International Holdings purchased a 100% stake in Delfor SA, which operates an extensive ice-cream distribution and sales network in Montenegro. Delfor imports the ice-creams from Delyug's factory in Serbia. In addition, Delfor and Delyug will exclusively distribute Greek snacks manufacturer Chipita International SA's products in Montenegro and Serbia, respectively. Since 1998, Delta Holding participates in Chipita's international activities and has developed a strategic co-operation with Chipita. This co-operation was further reinforced in January 2001, when Delta agreed with Chipita that the latter will use Delyug's distribution network to distribute Chipita's products in Serbia. In 1998, Delta built an ice-cream plant in Serbia's Stara Pazova, investing almost EUR 40 million through its subsidiary Delyug. The greenfield factory, which is located outside Belgrade, was built on land provided by its local partners, two state-controlled agricultural suppliers. In 2002, Delyug produced 6,000 tonnes of ice-cream and reported pre-tax earnings of EUR 3 million. By comparison, in 2000 Delyug sold 67 ice-creams against a forecast of 40 million, while during the Kosovo conflict production was halted completely. The company has built up a market share of 52%. Delta Ice Cream has carved out a leading market share in the Balkan ice-cream market after building partnerships with local businesses across the region.
Delta Romania's market share is currently 37%, but because of low disposable incomes, the Balkan ice-cream market has plenty of room for growth. For example, annual per capita consumption (2001) in Romania is 0.7 litres, in Bulgaria 0.8 litres and in Serbia 1.2 litres. By comparison, annual per capita ice-cream consumption in Greece is more than 5 litres.
As a European-oriented group of companies, Athens-based Delta Holding SA has a dynamic presence in South-East Europe with four ice-cream production plants operating in Bulgaria, Romania and Serbia and one manufacturing plant in Greece. Delta Ice Cream also owns one ice-cream plant in Greece. In Romania, Delta built a greenfield plant outside Bucharest. The EUR 25 million Romanian investment was also backed by Global Finance SA, the Greek venture capital and private equity firm, which invested in Delrom -- today known as Delta Romania SA -- in 1996. Delta says it makes no concessions on quality, manufacturing the same ice-cream brands at its four ice-cream production plants overseas as those produced in Greece. The company has invested heavily in building ice-cream plants and an independent distribution in the Balkans. Delta Ice Cream went public on the Athens Exchange (ATHEX) in 2002. Delta Holding, which is also listed on the ATHEX, currently controls a 90% equity stake in Delta Ice Cream. Delta is one of the very few international companies to have established a distribution network in Serbia and Montenegro. Furthermore, in 1992 and on the instigation of Global Finance SA, the Athens-based venture-capital and private equity firm, Delta acquired a 5% stake in Chipita International and received a seat on the board of directors. It also holds 12.5% stake of Chipita East Europe Ltd. On February 16th, 2004, Delta Ice Cream concluded the sale of its interest in Varna-based fluid milk company Vitalakt Milk AD to Bulgaria's United Milk Company (UMC) for EUR 1.8 million. Global Finance, which helped arrange the spin off of Delta's dairy company in Varna, has a 67% interest in OMC. Vitalakt Milk resulted from the spin-off of the dairy product production and distribution activities of Delta Ice Cream's subsidiary Vitalakt AD. The latter, in turn, retained the ice-cream business and was absorbed by Delta Bulgaria AD at the end of March 2004. Delta Bulgaria is exclusively involved in the production and distribution of ice-cream in Bulgaria since 1993. [Global Finance SA acquires majority stake in leading Bulgarian dairy company UMC] [premium content]
Frigoglass S.A.I.C. sells Bulgarian plastics firm IPOMA AD to Thrace Plastics Co. SA subsidiary
February 26, 2004 -- Frigoglass S.A.I.C. announced today the completion of the sale of its Bulgarian subsidiary IPOMA AD to a subsidiary of ATHEX-listed Thrace Plastics Co. SA. The transaction forms part of a restructuring programme of Frigoglass' plastics division. The transaction was completed through the sale of Cyprus-based TRIERINA Trading Limited, a wholly-owned Frigoglass Group subsidiary that owns 99.94% of IPOMA AD, to a Thrace Plastics Co. subsidiary for approximately EUR 4 million. This has partly been paid in cash and partly through the assignment to Thrace Plastics Co. of the indebtedness of TRIERINA Trading Ltd. at the time of transfer. Sofia-based IPOMA, which is the major player in Bulgarian plastic industry, was acquired by Frigoglass in 1997. IPOMA produces beer and beverage crates, general purpose crates (for meat, bread, fruit and vegetables producers), garden furniture, stadium seats, plastic merchandising and industrial products. In 2002, the company maintained a market share of 78% in the beer and soft drink crates market, as well as in the garden furniture market, where it launched new products using the new in-mold labeling production method, which improves on the appearance and decoration of plastic table tops. IPOMA's sales in 2002 decreased 55% year-on-year due to the cancellation of crate orders by the breweries and soft drink bottlers that are IPOMA's traditional clients. The Frigoglass Group decided to divest its participation in IPOMA in the absence of synergies with the other divisions of the Frigoglass Group. Frigoglass' Plastics & Closures Division currently consists of three production facilities -- Crownpak in Romania (a joint-venture with Crown Cork & Seal formed in 1999), 3P Romania SRL and Crown International, based in Romania. The sector's main finished products are plastic closures, plastic displays rocks & garden furniture and plastic-metal crowns. Frigoglass' Plastics & Closures Division is now emphasising on further developing its presence in the Romanian market. The group decided to increase its participation in 3P Romania -- it acquired a 49% stake in 2003 -- since it develops plastic refrigerator components in co-operation with the Frigoglass Group's Cool Division. Founded in 1978 in the industrial town of Xanthi in North-East Greece, Thrace Plastics Co. is one of the leading groups of companies in the plastic-synthetic textile product industry in Europe. The Thrace Plastics Group has plants in Greece (Thrace Plastics Co. SA), Scotland (Don&Low Ltd.), Ireland (Synthetic Packaging Ltd.) and Bulgaria (IPOMA AD), maintains sales offices in Scandinavia (Synthetic Polybulk AS) and owns Greece's Megabag SA. The group has more than 1,500 employees and annually converts almost 60,000 tonnes of polymers resulting to a yearly turnover of approximately EUR 150 million. Thrace Plastics Co. has been listed on the Athens Exchange (ATHEX) since 1995. The Frigoglass Group is a leading world-wide manufacturer of Commercial Refrigerators & Packaging Products for the food and beverage industries. FRIGOGLASS operates in 18 countries with 24 production facilities as well as 5 sales companies distributing the company's products in 75 countries. All group investments are handled by the parent company, Frigoglass S.A.I.C.
IKRP Rokas & Partners to help set up Energy Regulatory Commission in FYROM February 20, 2004 -- IKRP Rokas & Partners has been awarded the European Agency for Reconstruction (EAR) funded project 'Development of Energy Regulatory Commission in FYROM'. The project shall prepare:
The project commenced on July 22nd, 2003 and is set to end on July 31st, 2004. Yannis Kelemenis is leading the IKRP team as the senior legal expert of the project. The EAR in FYROM The EAR, which established an operational centre in Skopje in March 2002, is responsible for the management of the main EU assistance programmes in the Former Yugoslav Republic of Macedonia (FYROM). It was given responsibility for EUR 33 million of EC assistance funds in FYROM in 2003, and now manages a cumulative total portfolio of some EUR 219 million in different projects and programmes across the country. About IKRP Rokas & Partners Established in 1977, IKRP Rokas & Partners has grown substantially to develop an international network of law and business consulting firms which spread across South and East European countries. Through this broad network which consists of 12 partners, 73 associates and 11 consultants, IKRP Rokas & Partners has managed to provide its local and international clients with full comprehensive advice on a number of major projects conducted in the region, with the primary goal being the restructuring of local economies and the commencement of economic growth. IKRP Rokas & Partners has offices in Athens, Piraeus, Thessaloniki, Belgrade, Bucharest, Moscow, Prague, Tirana, Sarajevo, Sofia and Skopje, and maintains associate offices in Podgorica, Zagreb and Melbourne.
Advent International Corp. signs purchase of Bulgarian Telecommunications Company (BTC) February 20, 2004 -- Advent International Corporation today signed with Bulgaria's Privatisation Agency (PA) the agreement for its purchase of a 65% stake in the state-owned Bulgarian Telecommunications Company (BTC), through Viva Ventures Holding GmbH, an Austrian-registered vehicle. Financial partners in the transaction include the London-based European Bank for Reconstruction and Development (EBRD), Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) of The Netherlands, the Abu Dhabi Investment Authority (United Arab Emirates), Icelandic billionaire investor Thor Bjorgolffson, Swiss Life Private Equity Partners, Enterprise Investors and the National Bank of Greece -- through its private equity/venture capital arm NBG Venture Capital SA. The final agreement covers, as agreed on January 30, the purchase price of EUR 230 million plus a EUR 50 million capital increase, previously agreed redundancy figures and an also previously agreed minimum EUR 400 million programme of investment. Advent believes it can transform BTC from a state-owned monopoly into a fully competitive organisation, building on BTC’s dominance in its market. Plans include upgrading the access and completing the digitalisation programme, simplifying the organisation, developing business services including data and internet, implementing modern billing systems and outsourcing non-core activities. The Bulgarian telecom sector is expected to grow in line with GDP at some 4% per annum. BTC operates 2.9 million lines, of which 85% are residential. The company reported revenues of EUR 520 million on earnings of EUR 120 million. Advent will augment the existing management team at BTC with six senior industry managers, who combine significant operating experience in both traditional and alternative telecoms businesses with long experience of running companies in Central and Eastern Europe. Chris Mruck, Director of Advent International, said: “This is a great day for all of us who have worked on this deal over two years. It is also a major step forward for BTC. We can now, together, get on with the business of transforming the company into a competitive, commercial organisation and a great Bulgarian company." Advent International has been investing across Central Europe since 1994 and has made over 40 investments in the telecoms sector world-wide, including ESAT Telecom in Ireland, Cesky Mobil in the Czech Republic, Connex in Romania and ItalTel in Italy. Advent International’s advisers on this purchase have been Cameron McKenna (legal and tax), Georgiev, Toderov & Co. and Lega Interconsult (legal), PA Consulting (commercial), PricewaterhouseCoopers (due diligence). The Bulgarian government have been advised by Deutsche Bank (financial), Denton Wilde Sapte (legal) and Djingov, Goiuginski, Kyutchukov & Velichkov (legal). Advent International has taken clear and concrete social and financial commitments, according to the PA. The social programme calls for the "preservation of jobs" as follows:
This agreement comes after a process lasting almost two years, in which Advent International, through Viva Ventures, won the tender process in October 2002, with contracts negotiated and initiated in March 2003. To close the deal, the government must find a way to sidestep recent legal changes that prevent it from giving BTC the country's third GSM licence without calling a tender. Advent International believes that granting BTC a GSM licence would be in compliance with competition rules in Bulgaria and the EU, and therefore does not expect this issue to impede the closure of the deal. Mobile penetration in Bulgaria is currently about 43%, while this figure is expected to increase to 50% in 2004. In 2000, the previous Bulgarian government rejected a bid of USD 610 million for 51% in BTC by a consortium of Greece's Hellenic Telecommunications Organisation SA (OTE) and KPN of The Netherlands. Bulgaria's three (two digital and one analogue) mobile operators
MobilTel (GSM 900 operator) GloBul (GSM 900/1800
operator)
From the day that GloBul received Bulgaria's second GSM licence until the end of 2003, the company has invested EUR 450 million, according to Cosmo Bulgaria Mobile's parent company. Furthermore, the company was also the biggest foreign investor in Bulgaria during 2003, with USD 170 million invested. GloBul's subscribers currently exceed one million. The company's network covers 96% of Bulgaria's population and 77% of the Bulgarian territory. COSMOTE operates in four countries of South-East Europe: through direct ownership in Greece (COSMOTE) and Albania (Albanian Mobile Communications or AMC for short, the country's leading cellular operator in which COSMOTE has an approximately 83% participation since August 2000) and since January 2003, through management of companies owned by OTE in Bulgaria (GloBul) and the Former Yugoslav Republic of Macedonia (CosmoFon). COSMOTE's group consolidated results incorporate the Greek and Albanian companies. AMC's EBITDA margin in 2003 stood at an impressive 57%.
Mobikom (analogue operator: NMT 450i
standard) About Advent International Advent International is one of the world’s largest private equity firms, with USD 6 billion in cumulative capital raised and 14 offices in 13 countries. Since its founding in 1984, Advent has financed over 500 companies and has helped businesses raise USD 10 billion through public equity and debt offerings. The firm has been investing in the healthcare and life sciences industry for 18 years. During that time it has funded more than 80 companies in the sector, half of which have completed IPOs on major stock exchanges world-wide. About NBG Venture Capital NBG Venture Capital is a leading Greek private equity and venture capital firm pursuing investment opportunities across industries, primarily in Greece and South-East Europe. The firm presently advises three funds with total capital commitments of EUR 135 million:
NBG Venture Capital is a member of the National Bank of Greece, the largest financial group in South-East Europe and the largest Greek bank. The firm is also affiliated with NBGI Private Equity, a London-based fund management company advises a EUR 100 million private equity fund investing in established small to medium-sized "traditional-economy" businesses across the UK and continental Europe. Useful links:
EBRD, IFC, Alpha Bank SA support telephony in Albania
EUR 85 million helps Vodafone expand and improve services February 17, 2004 -- The European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC), and Greece’s Alpha Bank SA are pleased to announce their partnership with Vodafone Albania Sh.A. through an EUR 85 million loan that will enable Vodafone to extend its network coverage and provide quality services across Albania, increasing competition in what was previously a monopolistic sector. The EBRD and IFC, the private sector arm of the World Bank, are each providing EUR 35 million for nine years, with a further EUR 15 million syndicated to Alpha Bank, Greece’s second-largest bank, for up to eight years. The loan package -- unavailable in the local financial sector -- represents Albania’s largest ever debt-financed project, and the first syndicated private sector, long-term loan in the country. Peter Reiniger, Business Group Director for Energy and Telecoms at the EBRD, said the Bank is working with Vodafone Albania to help it expand its business in the country and promote competition in a heavily under-nourished sector. He added that the project indicates growing confidence in Albania, and also shows that strong, well-managed Albanian private-sector companies can obtain long-term financing from the market. As well as supporting market-economy principles, the project should demonstrate to other potential private investors the opportunities that exist in the country. Khosrow Zamani, IFC director for South Europe and Central Asia, noted that “this deal highlights the IFC’s commitment to supporting Albania’s private sector and helping develop its telecommunication services.” The project is expected to expand telecommunication services to reach a larger part of the Albanian population. “Vodafone Albania’s entry as a strong second operator in the country, together with its introduction of prepaid services, has led to an expansion of service and a reduction in tariffs, thereby extending telecommunication services to limited income and rural consumers”, Zamani added. Artemis Theodoridis, Executive General Manager of Alpha Bank, said: “Our participation in this project demonstrates our strong commitment to the Albanian market and to investments in the country’s telecommunication services and overall infrastructure. Alpha Bank currently ranks first amongst Albanian and foreign commercial banking institutions located in Albania in terms of financings and has since 1998 consistently proven its commitment in supporting large-scale private sector projects and commercial businesses across the country. Alpha Bank confirms its strong interest in pursuing new private and public sector projects in the future." Established in 2001 after it was awarded a 15-year licence to provide GSM mobile services across the country, Vodafone Albania is the second largest mobile operator in the country. It is majority owned by Vodafone Group PLC, the UK-based global wireless operator, and is managed by its Athens-based subsidiary, Vodafone-Panafon Hellenic Telecommunications Company SA. The Vodafone Group is the world’s largest provider of mobile communication services, and a top 10 global company. This latest project underlines its growing interest in South-East Europe. Thomas Papaspyrou, General Manager of Vodafone Albania, said this project is very important for the Albanian mobile communications sector. “It will help improve services for Vodafone’s customers and also contribute to Vodafone’s plans to develop further in the country,” Papaspyrou said. “Moreover, by working with institutions such as the EBRD and IFC, we benefit from financial support that ensures we can offer the best mobile communication services to our existing and future customers." Vodafone Albania's sole competitor is Albanian Mobile Communications (AMC), the country's leading cellular operator. In August 2000, AMC was privatised when COSMOTE Mobile Communications SA, Greece's leading cellular operator, agreed to pay USD 85 million -- more than double the second offer -- for 85% of AMC and invest to complete a nationwide GSM network. Today, COSMOTE's participation in AMC is approximately 83%. EBRD in CEE The EBRD is the single largest investor in Central and East Europe. In the telecoms sector alone, the EBRD has invested over EUR 1.8 billion. The EBRD, owned by 60 governments and two intergovernmental institutions, aims to foster the transition from centrally planned to market economies in central and east Europe and the Commonwealth of Independent States. IFC in Albania IFC has invested over USD 65 million in Albania, with projects ranging from the financial to infrastructure and construction to oil and gas. IFC's strategy in Albania remains focused on developing a strong private sector, while improving competitiveness and supporting job creation. IFC promotes and finances sustainable private sector development in emerging markets, and remains the biggest provider of resource flows to the private sector in the developing world amongst development finance institutions. IFC also mobilises capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. Alpha Bank Group in South-East Europe Founded in 1879, Alpha Bank is the second-largest bank in Greece. With 450 branches, Alpha Bank Group is also active in the international banking market with a presence in New York, London, Jersey (Channel Islands), Romania, Cyprus, FYROM, Albania, Bulgaria, and Serbia and Montenegro. Alpha Bank is the Official Bank of the Athens 2004 Olympic Games.
Sources: EBRD, IFC, Alpha Bank, INVgr.
Alumil Milonas SA to roll out Serbia acquisition January 30, 2004 -- Kilkis-based Alumil Milonas SA, Greece's largest aluminium extrusion group, is to acquire an unnamed Serbian company in the metal transformation section, according to a report in the Greek financial daily Chrimatistirio. Alumil already has a presence in Serbia -- through its subsidiaries Alumil YU Industry SA (100%), Alumil Coating S.R.B. d.o.o. (99.96%) and Alumil SRB d.o.o. (45%) -- and has targeted approximately EUR 10 million for investment from a total loan of EUR 20 million agreed at the end of 2003, it added. In March 2002, Serbia's Alumil YU Industry SA, a wholly-owned subsidiary of Alumil Milonas, signed a EUR 10 million contract with Stara Pazova to build an aluminium plant in this Serbian municipality. The construction should be completed within three years (2002-2005) and create 700 jobs. When completed, the new facility will have a production capacity of 2,500 (foundry), 5,000 (extrusion) and 5,000 (powder coating) tonnes. "Construction will be undertaken in three stages. After the first stage of EUR 6-8 million in investments, we will create 150 jobs," said George Milonas, Chairman, Managing Director and major shareholder, Alumil Milonas, adding that 40% of the total output is intended for the domestic market, with the remaining 60% to be exported to neighbouring countries. Established in 1988, Alumil Milonas is the leading aluminium extrusion and branded profile systems company in Greece and one of the largest producers of its kind in Europe with distribution centres in the Balkans, West Europe, the Middle East, the United States and other areas, and production facilities in Greece (three plants; in Kilkis, Komotini and Xanthi), Romania, Bulgaria, Egypt, Serbia (under construction) and Albania (under construction). The company has a market share of 23.5% in Greece. Alumil's activities are geographically diversified and vertically integrated. Its main competitors in Greece are ETEM SA, Alco Hellas SA, Elvial, Aloukom, Alounef, Europa Profil, Profilco and Almaco. The Alumil group, which has been active in the Balkans since 1992 and is currently exporting half of its output (40% in 2000, 50% in 2003) to 45 countries on four continents, reported revenues of EUR 126.56 million in 2003 (total exports accounted for approximately EUR 66.3 million of the company's revenues last year). The group consists of some 25 subsidiaries in Greece and overseas, which are either production units or commercial operations with distribution centres where Alumil is the main or sole shareholder. Alumil Milonas has been listed on the Athens Exchange (ATHEX) since 1998.
Coca-Cola Hellenic Bottling Company SA completes acquisition of Croatian mineral water producer Gotalka d.o.o. January 28, 2004 -- Coca-Cola Hellenic Bottling Company SA (Coca-Cola HBC) announced the completion of its acquisition of Gotalka d.o.o., the Croatian mineral water company, according to a Coca-Cola HBC press release on January 28th. The transaction is part of Coca-Cola HBC's joint acquisition strategy with The Coca-Cola Company. The acquisition includes a production facility at Budinscina and the company's local mineral water label, Bistra. The total consideration for the acquisition is EUR 7.2 million, excluding costs. Doros Constantinou, Coca-Cola HBC's Managing Director, commented: "The Bistra brand has significant potential and will enable our business in Croatia to expand into the promising water segment there. It is a small acquisition with no material impact on the group's financial results, and is very much in line with our strategy to broaden the selection of non-alcoholic beverages that we offer to our consumers." Coca-Cola HBC is one of the world's largest bottlers of products of The Coca-Cola Company and has operations in 26 countries serving a population of more than 500 million people. Coca-Cola HBC shares are listed on the Athens Exchange (ATHEX: EEEK), with secondary listings on the London (LSE: CCB) and Australian (ASX: CHB) Stock Exchanges. Coca-Cola HBC's American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE: CCH). The company is one of Europe's leading soft drink bottlers and is also the second largest Coca-Cola bottler in the world in terms of net sales revenue and market capitalisation. Source: CCHBC.
Emporiki Bank of Greece eyes Serbia, Albania, Bulgaria and Romania
January 24, 2004 -- Emporiki Bank of Greece SA, formerly Commercial Bank of Greece (CBG), is eyeing Albania, Bulgaria and Romania, either through acquisitions or organic growth. The state-controlled bank, in which France's Credit Agricole has a minority stake, is also eager to expand its presence in the Balkans by entering the Serbian market. In December 2002, Emporiki Bank froze a EUR 23.5 million deal to acquire 80% of Serbia's Kapital Banka AD, a growing Belgrade-based private bank with 14 branches. Emporiki Bank is willing to spend up to EUR 50 million in Serbia. Smaller banks are easier to absorb into Emporiki Bank's corporate culture, according to the bank's general manager. Emporiki Bank offers services in Albania, Bulgaria and Romania (through its subsidiaries Emporiki Bank - Bulgaria EAD, Emporiki Bank - Albania SA and Emporiki Bank - Romania SA, respectively) that the bank considers to be already quite comprehensive. Branches overseas still keep the bank's name, but are followed by the country name, e.g. Emporiki Bank - Germany GmbH. Emporiki Bank - Romania, for example, is involved in a wide range of banking activities, including loans, foreign exchange and investment, business consulting and Internet banking. The Emporiki Bank Group entered the Romanian market in September 1999 by establishing a subsidiary bank -- Commercial Bank of Greece (Romania) SA (now renamed Emporiki Bank - Romania) -- followed by opening the Romanian representative office of Emporiki Venture Capital SA (formerly Commercial Capital SA), Emporiki Bank's private-equity subsidiary and one of the largest private-equity firms based in South-East Europe with about EUR 160 million under management, at the end of 1998. Several years later, Fenix (Hellas) Agentie de Asigurari SLR Romania, which provides insurance brokerage services to Emporiki Bank's client base in Romania and to Greek companies operating in that country, was established. The Bucharest-based insurance brokerage firm is a 99.82%-owned subsidiary of Phoenix Metrolife Commercial Hellenic Insurance Company SA, the CBG Group's insurance arm. In the Balkans and the Black Sea countries, Emporiki Bank is developing its activities through its subsidiary banks, most of which have been established with the European Bank for Reconstruction and Development (EBRD). Emporiki Bank also has subsidiaries outside the Balkans, including Germany, London, Armenia, Georgia and Cyprus. Founded in 1907, Emporiki Bank is one of the largest commercial banks in Greece. It is the country's second-largest state-run bank after National Bank of Greece SA. The bank was listed on the Athens Exchange (ATHEX) on April 8, 1909. In June 2000, Emporiki Bank formed a strategic alliance with Caisse Nationale de Credit Agricole SA, the French-listed bank, with the objective of exchanging know-how and exploiting the comparative advantages of the two groups. At present, the French international banking group owns 23% of Emporiki Bank. In late 2003, talks had been underway between Credit Agricole and Ioannis A. Stournaras, Emporiki's former Chairman and Managing Director, for a further 10% stake increase in Emporiki. The Greek government is keen to see Credit Agricole as Emporiki's major strategic partner. [full profile...] [premium content]
EFG Eurobank Ergaisas SA strengthens position in Bulgaria December 23, 2003 -- EFG Eurobank Ergasias SA reached an agreement with American Life Insurance Company (ALICO) to acquire from the latter its 50% stake in Cyprus-based ALICO/CEH Balkan Holdings Ltd. (ACBH), owner of 91.71% of the shares of Bulgarian Post Bank AD, the fifth-largest bank bank in Bulgaria. Given that EFG Eurobank Ergasias already holds 50% of ACBH, through this acquisition the bank takes full control (100%) of ACBH. Bulgarian Post Bank is already one of the most dynamic credit institutions in the country. At the end of September 2003, the bank's total assets were BGN 835 million -- a market share of about 5% -- according to Bulgarian National Bank (BNB) data. The Greek banking giant will get management control of both companies with this move. No financials were disclosed. EFG Eurobank Ergasias informed Greece's stock exchange authorities about this agreement on December 19th. Completion of the transaction is subject to approval by the regulatory authorities. EFG Eurobank Ergasias has a vision to develop a presence in the wider region. The bank is currently active in Greece, Romania, Bulgaria and Serbia.
Eurobank's dynamic presence in South-East Europe
Established in December 1990, EFG Eurobank Ergasias is one of the most dynamic banks in Greece. Today, Eurobank's financial reach also extends to the emerging markets of South-East Europe. Through its subsidiary and affiliate banks in Bulgaria, Romania, Serbia and Montenegro, Eurobank provides modern financial services and products throughout the region. [more...]
Titan Group restructures operations in South-East Europe
December 9, 2003 -- This week saw much buying and selling from Athens-based Titan Cement Co. SA. Proving it still has plenty of muscle to flex, Titan announced two acquisitions and one sale in South-East Europe. Yesterday, Titan announced it is to acquire 99.9% of the shares of the Bulgarian firm Zlatna Panega Cement AD from Germany's HeidelbergCement Group. Located near Sofia, Zlatna has a production capacity of one million tonnes of cement. It also has three Ready-Mix Concrete plants. The share purchase agreement was signed on December 8th, 2003. The agreement is subject to the approval of the antitrust authorities in Bulgaria. Zlatna Panega is HeidelbergCement’s sole cement plant in Bulgaria. Because of this and the fact that there are no prospects of reaching a more significant presence in the country, HeidelbergCement has decided to sell the operations. The buyout of Zlatna is part of Titan's strategy of expansion abroad, the Greek multinational said. Subsequent to the acquisition of Zlatna Panega Cement and Zlatna Panega Beton in Bulgaria, and with an aim of simplifying the shareholding structures and of balancing its presence in the different markets of the region, Titan announced the conclusion of a second agreement, according to a Titan press release on December 9. Titan will sell 99.9% of the shares of the Bulgarian firm Plevenski Cement AD to Switzerland's Holcim Ltd. At the same time, Titan will acquire 46.5% in Skopje-based A.D. Cementarnica USJE from Holcim, increasing the Greek cement player's holding to 94.8%. USJE is based in the Former Yugoslav Republic of Macedonia and has an annual production capacity of one million tonnes, whilst Plevenski Cement operates the Pleven plant, situated near the city of Pleven in northern Bulgaria, and has an output capacity of 500,000 tonnes. [more...]
NBG Venture Capital SA successfully exists Bulgarian D-I-Y investment
November 19, 2003 -- NBG Venture Capital SA achieved a successful exit from an investment in Doverie Brico AD, a Bulgarian company operating a chain of Do-It-Yourself (D-I-Y) retail stores in Bulgaria. Doverie Brico currently operates stores in the cities of Sofia and Plovdiv with a total selling area of about 13,500 square metres and estimated annual turnover of approximately EUR 25 million. NBG Emerging Europe Fund LP, a private equity fund advised by NBG Venture Capital which invests in Central and East Europe with a primary focus on the Balkan region, sold and transferred its stake in Doverie Brico to Mr.Bricolage SA, the French D-I-Y operator listed on the Euronext Paris Second Market. [more...]
Smooth Greek-Bulgarian relations October 24, 2003 -- Nikos Christodoulakis, the Greek Economy and Finance Minister, said Greek-Bulgarian relations are ''an example of smooth economic cooperation" at the inauguration ceremony of the biggest investment in the Bulgarian metal industry by Greek metals group Viohalco, according to the Hellenic Centre for Investment - ELKE. Mutual investments, joint business initiatives, and infrastructure projects are the main directions for bilateral joint efforts, Christodoulakis stressed. He noted that ''trade was not enough'' and urged for more joint initiatives in energy systems, natural gas transport and the Burgas - Alexandroupolis pipeline.
S&B Industrial Minerals SA acquires 96.8% of Bulgaria's Bentonit AD
October 2d, 2003 -- S&B Industrial Minerals SA announced today the signature of a definitive agreement to acquire 96.8% of the shares of Bulgaria's Bentonit AD, through S&B Holding GmbH. Bentonit AD is listed on the Bulgarian Stock Exchange - Sofia. The sale will materialise through the stock exchange within the next six weeks. Bulgaria's Economic and Investment Bank PLC (EIBANK) is acting as an adviser and coordinator of the transaction. Located at the area of Kurdzali (Kardzali) in southern Bulgaria, Bentonit AD is active in the mining, processing and sale of bentonite, zeolite and perlite based products. The company's annual processing capacity is 200,000 MT of bentonite, 50,000 MT of zeolite and 150,000 m³ of perlite. Bentonit AD owns licenses on proven reserves of 7.3 million MT of bentonite, 2.8 million MT of zeolite and 0.8 million MT of perlite.
Bentonit AD's sales in 2002 exceeded EUR 9 million, while the EBIDTA reached EUR 1.4 million. Through this acquisition, S&B expands the range of bentonite qualities it already owns in Greece, Germany, Georgia and Hungary. This move will enable S&B to strengthen its presence in the cat litter and drilling bentonite product markets and expand its sales to new territories. At the same time, the acquisition enhances the company's penetration in the expanded perlite market of Southeastern Europe, and creates new opportunities in the filter aids market. Furthermore Bentonit AD's zeolite reserves and processing capabilities will facilitate the development of this product line throughout Europe. A 100%-owned German subsidiary of S&B Industrial Minerals, S&B Holding GmbH holds participations in various companies in Germany, the U.S., Hungary, Spain, Turkey and Bulgaria. [more...] [premium content]
LAMDA Development and Technical Olympic Group develop model residential complex in Bucharest
October 22, 2003 -- LAMDA-Olympic Srl, a 50%/50% joint venture between ATHEX-listed Lamda Development SA and Bucahrest-based Eurorom Constructii Srl, a member of the Technical Olympic Group of Companies, is developing a model residential complex in Bucharest, the Lake View Condominium, which has been internationally recognised with the 'Most Important Residential Project' award during the 'Home & Office - Building Success' conference and 'Awards Gala for Excellence,' organised in the Romanian capital by Bucharest Business Week. LAMDA-Olympic was established in 2002 as a real-estate development company with a share capital of USD 7 million. Total investments in the residential complex, which is built on land that belongs to LAMDA-Olympic, will reach approximately EUR 20 million. Technical Olympic's presence in Romania initially began through its subsidiary Eurorom Constructii, which was established a few years ago in order to exploit potential opportunities in the Romanian real-estate market. Eurorom initially acquired two land plots in Bucharest for future development. One of them is the Lakeview Condominium residential complex. Eurorom is now a wholly-owned subsidiary of ATHEX-listed MOCHLOS SA, a publicly-listed company in which ATHEX-listed Technical Olympic SA is the majority shareholder. The Lake View Condominium residential complex is currently in the final phase of construction on a 9,000 m2 plot on Nordului Street by the Herastrau Park in the north of Bucharest. The development, which totals 23,000 m2, includes seven buildings with 93 luxury residential units and 6,500 m2 of underground space. [more...] [premium content]
EBRD promotes residential mortgage lending in Bulgaria EUR 15 million to Bulgarian Post Bank AD for residents' access to long-term mortgage finance October 17, 2003 -- Residents in Bulgaria will gain access to long-term financing to buy, build or refurbish residential properties following a EUR 15 million loan from the European Bank for Reconstruction and Development (EBRD) to Bulgarian Post Bank AD (Postbank). The 12-year loan, the EBRD's first residential mortgage loan in Bulgaria, will enable Postbank to provide its clients with long-term mortgage financing, which is currently limited. The loan will also increase competition in the longer-term residential mortgage lending sector. Rogers LeBaron, Director, Bank Lending at the EBRD, said the loan will help Postbank provide its clients with the opportunity to become homeowners. Bulgaria's mortgage market is still underdeveloped, but it is growing. This loan will improve competition, which will benefit local residents, LeBaron added. The facility will be structured in such a way that the underlying credit assessment procedures, mortgage loan documentation and security will be standardised, which can later facilitate mortgage bond issues and securitisation. Postbank is one of the top five banks in Bulgaria, with assets of EUR 400 million and equity of nearly EUR 40 million at 2002 year-end. [more...] [INVbg] [premium content]
OPAP SA expands in Cyprus
October 7, 2003 -- ATHEX-listed Greek Organisation of Football Prognostics SA (OPAP) acquired 90% of the share capital of Glory Leisure Holdings Ltd. and 20% of the share capital of Glory Technology Ltd. for a total of EUR 26 million, the state-controlled Greek sports betting operator announced. Both Cyprus-based companies are subsidiaries of Quantum Corporation, the holding company of the Glory group of companies. OPAP (or Organismos Prognostikon Agonon Podosferou A.E. in Greek) is a public company that resides in Athens and, based on inter-country agreements that have been contracted between the Cypriot and Greek governments, carries out lucky games in Cyprus. OPAP is known in the wide Cypriot public via the games that it organises (PROPO, LOTTO, Pro-po GOL, PROTO, TZOKER, GENIKO STIHIMA, EXTRA 5, SUPER 3). Glory Leisure Holdings Ltd. is a member of the Glory Worldwide Holdings Ltd. group of companies and is involved in "the sector of offer of football bets of pre-determined danger". OPAP acquired its majority stake in Glory Leisure Holdings for EUR 16 million (CYP 9.35 million). Glory Worldwide Holdings Ltd. is listed on the Cyprus Stock Exchange. Glory Technology Ltd. is also a member of the Glory Worldwide Holdings Ltd. group of companies and is a leading information technology (IT) company which is providing turnkey solutions for government-licensed lottery operators both in the local (Cypriot) and international markets. OPAP acquired its minority stake in Glory Technology for EUR 10 million (CYP 5.85 million). Glory Technology is active in Cyprus and has plans to expand to Moldova, Bosnia and Herzegovina, the United Kingdom and China. [company profile...] [premium content]
EBRD, Global Finance SA, Bulgarian Post Bank AD, Banc Post SA and European Commission launch Global Bulgaria and Romania Growth Fund Up to EUR 20 million to help entrepreneurs in Bulgaria and Romania to grow June 5, 2003 -- The European Bank for Reconstruction and Development (EBRD) and Global Finance SA, the biggest private-equity investment company in South-East Europe, are setting up a private equity growth fund to target small and medium-sized enterprises (SMEs) in Bulgaria and Romania. Other investors include Bulgarian Post Bank AD, Romania's Banc Post SA and the European Commission with EUR 6.5 million through the equity window of the EU/EBRD SME Finance Facility. The initial capital will be EUR 16.25 million, which could be extended to EUR 20 million. The new Global Bulgaria and Romania Growth Fund expects to make equity investments with an average size of EUR 800,000 in growth-oriented SMEs, taking both minority and majority stakes. Managed by Global Finance, the fund will mainly target companies that are led by strong management, have good potential for growth and are building strong brand names and distribution networks, while taking strong positions in the local markets. It will also look for companies that are using local resources and are highly competitive within their field. Established in Greece in 1991, Athens-based Global Finance manages over EUR 400 million throughout the region, including through the Black Sea Fund, which makes investments in the Balkans in the USD 5-10 million range. Global Finance also provides its investee companies with hands-on management support, follow-on financing capacity, the ability to attract strategic partners, and access to an extensive network of relationships, including clients, suppliers, professional advisers and financial institutions. [more...] [INVbg] [premium content]
World Economic Forum in Athens focuses on South-East Europe's "European Prospect" WEF's South-East Europe Meeting, May 23-24, 2003
May 25, 2003 -- Entrepreneurs, decision-makers, investors, political leaders and opinion formers from 30 countries gathered in Athens on May 23 and 24, 2003 to discuss finance, trade, industry focal points, society and culture during a conference focusing on this region. Titled "The European Prospect" and organised by the Swiss-based World Economic Forum (WEF), this two-day South-East Europe Meeting was held during the culminating weeks of the Greek Presidency of the EU, which expired at the end of June 2003. The World Economic Forum gathered 300 international investors, regional business leaders, key ministers and opinion-makers as well as the media. Together, participants examined the issues confronting Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Greece, the Former Yugoslav Republic of Macedonia (FYROM), Romania, Serbia and Montenegro, Slovenia and Turkey. INV International Ltd. participated in this international meeting of significant importance to South-East Europe. Conclusions and recommendations by the business community were fed into a major intergovernmental conference on the EU-Balkan integration process, which was held by the Greek government in Thessaloniki on June 21st, 2003. As well as looking at the achievements and potential of the region, WEF made concrete proposals for the future. Sessions over the two days explored privatisation issues, competitiveness in the finance sector, how South-East Europe can catch up economically with peers, competitiveness, entrepreneurship, European integration, stability, social imperatives, political risk, the networking society, investment climate, macro- and microeconomic reform, attracting and attaining FDI, and many other issues. Early-morning country-specific breakfasts included Bulgaria, Croatia, Romania, Serbia, Slovenia and Turkey. Global financier, thinker, philosopher and philanthropist George Soros, Chairman, Soros Fund Management, and Theodoros B. Karatzas, Chairman and Governor, National Bank of Greece, co-chaired the South-East European gathering. Soros, who arrived in Athens on May 22, 2003, is a shareholder in, among others, SouthEast Land Holdings (formerly Hellenic Land Holdings), a newly-formed holding company and developer that plans to be focusing on South-East Europe. It is his first investment in Greece. The other shareholder of SouthEast Land Holdings is Panos G. Mihalos, founder of Athens-based DTZ Mihalos SA and Chairman & CEO of SouthEast Land Holdings. [full report of WEF's South-East Europe Meeting...] [premium content] (INVgr: It should be noted that SouthEast Land has closed down and that Soros does not have any more activities or business in Greece through SouthEast Land Holdings.) INVgr update (September 30, 2005): Dolphin Capital Investors Limited, a fund managed by Dolphin Capital Partners, is set for an IPO on the Alternative Investment Market of the London Stock Exchange by the end of this year. Specifically tailored to growing businesses, AIM combines the benefits of a public quotation with a flexible regulatory approach. AIM gives companies from all countries and sectors access to the market at an earlier stage of their development, allowing them to experience life as a public company. Dolphin Capital Investors is the first private equity real estate vehicle focusing on the leisure-integrated real estate sector in South-East Europe and, specifically, in master-planned leisure-integrated residential resorts in Greece, Cyprus, Turkey and Croatia in partnership with leading developers and operators. Dolphin Capital Investors was capitalised in the summer of 2005 by institutional and private investors. The lead institutional investor was New York City-based Fortress Investment Group LLC, a leading investor in real estate private equity founded in 1998 with approximately USD 15 billion of equity capital currently under management. Dolphin Capital Partners was founded in 2004 by Miltos Kambourides and Pierre Charalambides with offices in Athens and Cyprus. Kambourides was previously a founding member and is now a Retired Partner of Soros Real Estate Partners (SREP), recently renamed Grove International Partners. SREP was a global real estate private equity business formed in 1999 by George Soros and Richard E. Georgi, investing on behalf of Soros Real Estate Investors C.V., a USD 1 billion real estate private equity fund that targets Europe and Japan. During Kambourides's tenure as a Partner, SREP executed total investments of USD 500 million of equity in complex real estate transactions in Western Europe and Japan, including a significant investment in several master-planned leisure integrated residential Community developments in Spain through a dedicated real estate platform named MedGroup. While at SREP, Kambourides was primarily responsible for investments relating to property outsourcing in the UK and for the SREP investment strategy in South-East Europe. Kambourides was the deal leader and a founder of Mapeley Ltd., which was a co-investment between SREP and Fortress. In 2005, Fortress acquired full ownership of Mapeley and listed it on the London Stock Exchange. Mapeley was one of the biggest real estate company IPOs in history, with a current market capitalisation of approximately GBP 620 million.
Global Finance SA acquires majority stake in leading Bulgarian dairy company UMC May 9, 2003 -- Global Finance SA, the leading Greek private equity and venture capital management firm, announced that it concluded a EUR 5.1 million investment in Bulgaria's United Milk Company AD (UMC), a local dairy company with leading market shares in fresh milk, yoghurt and cheese. UMC produces and markets a wide range of dairy products under a number of brand names. With a turnover in 2002 of more than EUR 13 million, UMC leads the fresh and UHT milk markets with market shares of around 25% and competes in the first tier of the Bulgarian yogurt market with a market share of around 10%. With a turnover in exports of more than EUR 3 million, UMC accounts for some 30% of Bulgaria's cheese exports. UMC's plans include a major upgrade of its production facilities as well as investments in milk collection and distribution. The company is also hoping to conclude within the next months the acquisition of a significant regional player, which could add up to 10% to its market shares. UMC also plans to launch value-added dairy products produced under license from Yoplait of France. Global Finance has been already working closely with the company to strengthen the management team, install systems and procedures and define its strategy. [more...] [premium content]
Intracom SA and Intracom Constructions SA form new subsidiary in FYROM
INTRACOM Ltd. Skopje - Telecommunications, IT and Electromechanical Projects, Systems and Services January 13, 2003 -- Intracom SA, jointly with its subsidiary Intracom Constructions SA, proceeded with the incorporation of a Limited Liability Company under the corporate name INTRACOM Ltd. Skopje, based in the capital of the Former Yugoslav Republic of Macedonia (FYROM). With a share capital of EUR 200,000, the company has two shareholders -- Intracom Constructions (30%) and Intracom (70%) -- which are both listed on the Athens Exchange. INTRACOM Ltd. Skopje will deal with the implementation, installation and maintenance of all types of technical projects (including their equipment), the supply of telecom equipment and communications systems, the import-export, supply, installation, management, implementation and "turn-key" delivery of telecom, electronic, electromechanical hardware and software, control & measurement devices and information systems, the repairing and maintenance of telecom equipment and IT systems, as well as services provision ranging from technical support and maintenance to consulting, research and studies preparation on the implementation of all types of projects (software, telecom systems, IT systems, etc.). Furthermore, the company will be active in commercial activities abroad and particularly, in financial, organisational, and technological services provision, consulting and engineering services for the telecommunications sector abroad, marketing of telecom and IT terminal equipment, provisioning services for guest hospitality, international transports and representation of foreign trading houses. Intracom Constructions, a member of the Athens-based Intracom Group, has gained recognition as one of the fastest growing and highly specialised Greek construction companies with a strong presence in Greece and Eastern Europe.
Coca-Cola Hellenic Bottling Company SA completes acquisition of Romania's premier sparkling mineral water producer December 17, 2002 -- Coca-Cola Hellenic Bottling Company SA (CCHBC) announced today the completion of its acquisition of Dorna Apemin SA, Romania's premier sparkling mineral water company. CCHBC's interest in Dorna Apemin represents 49.1% of the outstanding shares. The Coca-Cola Company (TCCC) also holds 49.1%. Total consideration for the acquisition was EUR 39.0 million, of which CCHBC's share was EUR 19.5 million. Transaction costs amounted to EUR 0.1 million. The acquisition comprised all brands and products of Dorna Apemin, including White Springs (still, low sodium; also known as Izvorul Alb), Poiana Negri (sparkling) and Dorna (naturally sparkling) mineral waters. CCHBC is one of the world's largest bottlers of products of The Coca-Cola Company and has operations in 26 countries serving a population of 537 million people. Source: CCHBC. Did you know that... ...Dorna, the Romanian naturally sparkling mineral water brand, has risen to the number one position in market share by value in Romania since Coca-Cola Hellenic Bottling Company SA acquired it in 2002?
Greek-German joint venture of Themeliodomi SA - Passvant Roediger Anlagenbau GmbH to upgrade water and wastewater services of Romania's Constanta County Project: Constanta North WWTP, Romania July 26, 2002 -- The European Commission has endorsed a new ISPA financed contract with a value of over EUR 28 million. The scope of this contract is to construct a new wastewater treatment plant on the site of the existing Constanta North WWTP in Mamaia Boulevard. Its impact is twofold: a clear environmental impact, through reducing pollution levels in the Black Sea, and a public health impact, through the elimination of water-based diseases and hopefully improved fisheries off shore. "This contract is a key investment, because this plant together with a long sea outfall, to be let under another contract, are the key steps to Romania obtaining the first 'Blue Flag,' the European bathing water quality standard, by the summer of 2007," said Jonathan Scheele, Head of the EC Delegation in Romania. He also added that "the execution of these works will create approximately 200 new long- and short-term jobs for the local people." This is a major works contract aimed at upgrading the water and wastewater services of the Constanta County, to the highest level of EU standards for sensitive waters. The winner of this contract is the Greek-German joint venture of Themeliodomi SA - Passvant Roediger Anlagenbau GmbH. The value of the contract is EUR 28,565,540. The contract period is 40 months to the end of 2005, followed by 12 months testing period for the plant to perform and meet the necessary standards. The implementation of this contract will bring the following results:
This contract is part of the largest ISPA project approved by the European Commission in the field of environment, namely ISPA Constanta, with a total value of EUR 96.5 million, out of which EUR 72.4 million is a EU grant. About the ISPA programme Launched in 2000, the Instrument for Structural Policies for Pre-Accession, or ISPA for short, is the special pre-accession instrument aimed at co-financing large infrastructure projects in the field of transport and environment. Romania could receive 208 to EUR 270 million annually through this programme between 2000-2006, being the second candidate state, after Poland, as to the amount of funds allotted. Source: Delegation of the European Commission, Bucharest.
Foreign direct investment
in Bulgaria by country of origin
Selected news you can use -- Bulgaria Plaisio Computers SA plans
to expand to neighbouring Bulgaria Viohalco's Steelmet AD increases
its production capacity NEK EAD in electricity
distribution joint venture with Greece's Copelouzos Group Investments in Zagorka brewery exceed EUR 60
million Sheraton Sofia Balkan AD
posts 7.7% higher H1 2002 net earnings Hellenic Petroleum SA to invest over EUR 100 million in Bulgarian fuel stations Initial
public offering (BGN 15 million bond issue, 7.5% notes due 2005):
Business and investment intelligence on South-East Europe
NEWS, REPORTS, NEWS AGENCIES & RELATED LINKS INTERNATIONAL ORGANISATIONS, INITIATIVES, AID, PROGRAMMES & DECLARATIONS CHAMBERS OF COMMERCE AND INDUSTRY, FOREIGN TRADE, TRADE POINTS, DIRECTORIES & BUSINESS CLUBS CAPITAL MARKETS
The Balkans: Obstacles & Opportunity for Investment The Balkans have become a natural choice for Greek investors looking for attractive returns at reasonable prices. "The opportunities are fantastic," says Georgios Kintis of NBG Venture Capital. "There is plenty of talent and a high level of expertise among the people of countries like Bulgaria and Romania. In addition to that, the Internet has given local entrepreneurs a window to the world; it has influenced not only business practices but, perhaps more importantly, business culture as well." Accordingly, Greek investors have poured their money into a diverse array of Balkan business sectors, including food and beverages, banking, telecommunications, networks, mining, energy and construction. Despite the overall appeal of the Balkans, obstacles to greater regional investment are present. There are limited resources available for venture capital opportunities north of the border, and what deal flow exists often passes through the hands of a very few players... [more...] [premium content]
For the past two years, one of the focuses and interests of the Enviro Group has been the environment in the Balkans. Investigations of the environmental impacts of the war revealed that reconstruction and clean up was needed not just for the environmental damage caused by war but also for the serious and long-term environmental pollution caused by prior poorly regulated industrial processes. Now, it is up to donors, investors, local authorities and citizens to ensure past mistakes are not repeated. Projects with short-term economic benefits, yet long-term environmental costs, must be rejected. Second, it is important to recognise that investment in environmentally-sound projects does little good, unless an effective institutional and legal framework supports it. Third, importance must also be placed on a democratic and well-informed civil society. Finally, no matter how well any one country manages their environment, various environmental risks will be generated outside of its borders. Therefore, it is important for each country to take an active role in regional environmental cooperation and capacity building. [more...] [premium content] Former Yugoslav Republic of Macedonia (FYROM)
In FYROM, Enviro is currently working on several critical environmental projects totaling over USD 30 million. One of the projects is considered one of the five industrial hot spot sites posing immediate threats to human health and the environment. It involves the rehabilitation of the wastewater treatment plant of OHIS, the largest chemical processing plant in the country. The equipment is in a state of disrepair causing contaminant discharge to the Vardar river (Axios river), which eventually empties into the Thermaikos Gulf just outside of Thessaloniki. Rehabilitation of the plant would increase its overall efficiency and significantly minimise contaminant discharge into the river. Enviro is also preparing the feasibility study for introducing a medical waste management system for FYROM, as well as a municipal waste management system for the Drizla landfill. The country currently lacks a medical waste management system and it is being deposited along with solid waste in illegal sites throughout the country. This project would entail proper collection, treatment and disposal of medical waste. The Drizla landfill project would involve the design and construction of a comprehensive waste management system for the landfill, including and recycling. The Drizla landfill receives municipal and industrial waste from the City of Skopje and surrounding communities. The comprehensive waste management system for FYROM is a project, which is co-funded by the Government of FYROM, Enviro Engineering, Inc. (U.S. Corporation), the U.S. Government, and the European Bank for Reconstruction and Development (EBRD). [more...] [premium content] Enviro is currently negotiating with the U.S. Treasury Department and with the Ministry of Finance of FYROM a debt swap. Under such a scenario, Enviro would purchase a portion of FYROM's outstanding debt from the U.S. Government. FYROM would then repay Enviro by investing in priority environmental projects. This is the first time that the U.S. Government performs a debt swap involving a privately-owned U.S. firm. Previous debt swaps have occurred throughout Latin America, Asia and Eastern Europe through direct environmental investment from Government to Government. [more...] [premium content]
Profile
Black Sea Trade and Development Bank (BSTDB)
The Black Sea Trade and Development Bank (BSTDB) was established by the
eleven member states of the Organisation of the Black Sea Economic
Co-operation in 1998 as a regional multilateral development financial
institution. It is a multilateral development bank with a regional focus
and an international status... [full
profile...] [premium content]
Opinion: Tax Free Zone For Balkan Countries By Nikos Philippou The business community of Greece, and especially of Thessaloniki, is greatly interested to increase its market approach to our close neighbours, the 30 million people who live outside Greece's borders yet within 300 kilometres of Thessaloniki. This market in Albania, Kosovo, FYROM, Bulgaria, Romania, Serbia and Montenegro, at a distance from Thessaloniki equal to that between Thessaloniki and Lamia, is easily within the transportations cope of many Greek products, yet due to tariff agreements is seemingly far away. Easier access to this important market would significantly boost domestic production and attract foreign investment. That access can be improved through two approaches: (1) The business community strives to improve communication and collaboration with the local business community of each country or (2) the political community enacts new statutes that facilitate the free movement of products in the area, creating something similar to a "free trade" zone. Since the summer of 2000, these countries (excluding Greece) have traded with a 1% customs tariff, encouraging cross-border trade and stimulating economic growth. Greece could easily become a partner in this beneficial scheme, either through an EU-wide agreement or through individual bilateral agreements. Presently, products that Greece imports from these countries are almost duty free, although tariffs on Greek products to these countries are considerable, creating trade difficulties. [full story...] [premium content] Source: "Business Partners," the bi-monthly magazine of the American-Hellenic Chamber of Commerce (AmCham), Greece.
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