PETROL TO TRANSFER CONTROL OVER EUROBANK TO A HIGHER LEVEL
Petrol AD is going to sell its 99.80% stake of the capital of Eurocapital Bulgaria AD to Petrol Holding. The stake consists of 128,273 personal shares, each with a face value of BGN100. In turn, Eurocapital Bulgaria possesses 85.35% of the capital of EUROBANK. Therefore, the crediting institution remains in the structures of the holding, while passing under its direct control. The shareholders of Petrol AD will authorize the Management Board and the Executive Director of the oil distributor for this sale on an extraordinary general meeting fixed for April 29, 2004. The statute of the company will be changed during the meeting, too. However, the transfer of the shares will also require permission from the Supervision Department of the Bulgarian National Bank (BNB).The shares will be assessed by independent experts, still the price will not be lower than their market value. Last July Petrol acquired the stake in Eurocapital Bulgaria from the Slovakian Istrokapital fund. The buyer paid BGN14.5MN for the acquisition, but only after the experts say their opinion will it be clear whether Petrol Holding will pay the same or a higher price.The deal is part of the planned restructuring of the holding. It aims at orienting Petrol to the trade in liquid fuels only and at leaving all other operations to the parent company.Petrol AD will keep its control over Petrol Trans Express EOOD which is mostly engaged with the transportation of the holding's products; over Petrol Tehnika EOOD which occupies with construction, repair and services at the oil-stations; Petrol Card Service OOD engaged with the trans card payments at commercial centres owned by the fuel distributor; and Naftex Petrol. Other subsidiaries of Petrol are Petrol Engineering, Petrol Storage, Petrol Trade, Transat, BPI, Transloto, Trans Telecom. Part of them may be transferred to the holding. Another company, Vratitsata OOD, will probably be taken out of the structure of Petrol, too. Petrol AD ended last year with a profit amounting to BGN2.3MN, while a year earlier its financial result reached BGN8.7MN. The company revenues from its ordinary business amount to BGN356MN, down from BGN388.9MN a year earlier. Currently, Petrol Holding owns 92.92% of the capital of the fuel distributor. The Ministry of Economy still controls a 1.893% stake, but it will be sold on the stock exchange. The rest of the shares are distributed among small shareholders.