BCC TO BUY OUT ZEMEDELIE SHARES AT THE STOCK EXCHANGE
The idea of the government to transfer Zemedelie shares in Central Cooperative Bank (CCB) to the Bank Consolidation Company (BCC) capital was confronted by serious problems related to procedures. The Council of Ministers adopted the decision for carrying out this operation at a session held on February 8, 2001. The idea was the transfer of shares with a total nominal value of BGL5.25MN (32.77% of CCB capital) to be free of charge, thus increasing BCC capital from BGL20.7MN to BGL5.95MN. Even the best intentions, however, may fail due to bureaucratic inadvertence. Obviously, state officials did not think of the fact that CCB is a public company and any deals with the bank's shares can be performed at the Bulgarian Stock Exchange only.
The only exception is made in the cases when both the transferring and receiving sides are entities entitled, according to Art. 3 of the Privatisation Law, to sell state property. These are the ministries, the PA and municipalities. According to Nora Stoichkova, Director of PA Press Center, Zemedelie Fund does not belong to this category.
In this situation, a BCC shareholder will have to buy at the Stock Exchange Zemedelie Fund's shares at CCB, said Manyo Moravenov - Director of the Stock Exchange Trade Division. This will most probably be the Ministry of Finance, which currently owns 98% of BCC capital.
The tranfer of shares can be registered at the block segment of the Stock Exchange, said Radoslav Tsonchev, Chairman of the State Securities Commission.
According to Manyo Moravenov there will be no problem for a free transfer of the shares if this is a block deal, in case seller and buyer use the same investment intermidiary. They will have, however, to pay the Stock Exchange and the Central Depository Office fees, while only the first one is 0.2% of the deal's total value.