Bulgaria to sell state tobacco firm

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The Bulgarian government will initiate the privatisation of state-owned tobacco manufacturer Bulgartabac next week, the head of the Bulgarian Privatisation Agency has announced.

Meetings between economy minister Nikolai Vassilev and representatives from British American Tobacco were held in August, and Vassilev reported that Philip Morris is also among the potential investors.

The government is hoping to sell 80% of the company to one strategic investor, while retaining the right to veto important decisions on Bulgartabac?s future.

Bulgartabac also has tobacco treatment plants in Russia, Ukraine, Romania and the former Yugoslavia, although these are operating at a loss, according to its management.