Bulgaria signs contract to sell Bulgartabak to Russia’s Vtb

Bulgaria signed a contract with a unit of Russia’s second-largest bank OAO VTB to sell a majority stake in Bulgartabak Holding, ending a fourth effort in 12 years to sell the biggest state-owned tobacco maker. The buyer of the 80% stake for EUR 100 million must continue producing tobacco and cigarettes and avoid insolvency during the next 10 years. VTB was the sole bidder in the tender after British American Tobacco Plc, Europe’s largest cigarette maker pulled out. This is Bulgaria’s biggest sale of state assets since the government of Prime Minister Boiko Borissov took office in 2009.

Source: Bloomberg