Bidding battle expected for Kalotina-Balkantourist

Tina Milton

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Fierce competition is anticipated for a store on one of the busiest borders in Bulgaria

A "severe bidding battle" is expected over the sale of state-owned Balkantourist-Kalotina, which has one shop located on the Bulgaria-Serbia border, after the Privitisation Agency put it up for public auction earlier this month.

As reported in DFNI (November 15 '04), the company was closed last year and began looking for an investor. Bulgaria Duty Free Association chairman Radostin Genov explained: "The company is not a member of the Association and it has not been operational for a long period of time, but the Ministry of Finance renewed the company's duty-free licence at the end of 2004.

Reports indicate the starting bid for 100% of its share capital is Lev360,000 ($240,000), the bidding increment is Lev20,000 ($13,333), and the bid security Lev100,000 ($66,666). A bidding date has yet to be finalised but Genov said several bidders are expected as the shop is one of the most sought after border sites in Bulgaria: its passenger traffic is high and the location will not be impacted by the country's scheduled accession to the EU in 2007.