Bulgaria opens sale procedure for BDZ Cargo

Bulgaria announced it has opened a public tender procedure to sell the freight transport unit of state-owned railway holding company BDZ, BDZ Cargo.
According to the local press, in March 2012, the Bulgarian Privatisation Agency would have approved the criteria for selecting the companies who want to acquisition of BDZ’s freight transport division. They will have to have a turnover of at least EUR 500 Million in the past three years and to manage at least EUR 1 Billion.
The future buyer of  BDZ Cargo will have to invest at least EUR 50 Million for the acquisition of new locomotives and cars in the first year from the acquisition. According to the board of the company, the transaction could amount to EUR 100 “positive estimates place the offer at around EUR 130 Million and most pessimistic at EUR 60 Million”, said Vladimir Vladimirov, BDZ Chairman. Also, the Privatisation Agency has evaluated the freight transport branch at BGN 190-250 Million (EUR 97-128 Million). According to officials representing the operator, the transaction could be finalized in June-July.  Both strategic and financial investors are eligible to apply for the purchase of 100% of the capital of BDZ Freight Services. The assets of BDZ Freight Services are worth some BGN 320 M, as mentioned by Bulgarian Transport Minister Ivaylo Moskovski several months ago.
Source: http://wire.seenews.com www.novinite.com