Viva Telecom Bulgaria acquires 94% of BTC.

By bne IntelliNews November 13, 2012
Newly registered company Viva Telecom Bulgaria acquired a 94% stake in Bulgarian telecom BTC from NEF Telecom Bulgaria, BTC announced on its website. The transaction follows an approval of a comprehensive restructuring scheme of BTC, which involved affiliates of Russian VTB Capital plc (VTB) and Bulgarian Corporate Commercial Bank AD (CCB) acquiring a majority equity stake in the restructured group. In October, the European Commission gave the green light to the acquisition. Following the deal, BTC will reduce its total leverage from approximately EUR 1.7bn to EUR 588mn through debt repayment, equity conversion and an outright debt write-off. The amendment to the credit facilities agreement and related documents enter into force as of November 12. The majority owner is now expected to make a buy-out offer to minority shareholders, of which Artio International Equity Fund holds a 4% stake, according to BTC, trading as Vivacom, said its consolidated net profit surged 34% on the year to BGN 32.9mn (EUR 16.8mn) in the first nine months of 2012. The growth was supported by a 12.3% rise in the company's revenue from mobile services that reached BGN 296.1mn, mainly thanks to a 113% surge in the number of mobile data users. Total consolidated revenue declined to BGN 650.4mn from 654.4mn a year ago.

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