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Bulgarian business sector calls for listing of energy monopolists on stock exchange

Date: March 10^th 2010 Author: Anastasiya Georgieva Aleksandrova, Sofia Category: Articles
Topic: Electricity , Economy

The Bulgarian government has taken a rapid decision to offer shares of companies in the structure of Bulgarian Energy Holding (BEH) on the Bulgarian Stock Exchange in order to revive the local capital market from the depression into which it has fallen. The proposal was set forth in a letter addressed to Prime Minister Boyko Borisov and other members of the Cabinet, the Bulgarian Stock Exchange (BSE), business organisations, and sector organisations connected to the exchange and financial markets.

The letter was unique because it was signed by all institutions and participants on the securities market in Bulgaria, as well as by three employer organisations, banks, mutual funds, pension funds, investment mediators, the Chamber of Commerce and more.

The sale of minority shares from state energy companies – Bulgartransgaz, Kozloduy nuclear power plant, the National Electricity Company, the Electricity System Operator, Maritsa Iztok II thermal power plant and electricity distribution companies – by initial public offering should be a catalyst for the recovery of the capital market in Bulgaria. Even more, as the business sector has suggested, it will be a source of fresh money for the national budget.

PHOTO: www.kznpp.org

Bulgaria is one of the few countries in the European Union that has not listed its energy monopolist companies on the stock exchange. In the letter was attached an addendum giving examples of similar practices in Romania, the Czech Republic, Poland, Italy, Greece, Norway, Austria and other countries whose stock exchanges are much more liquid and developed due to such projects.

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