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From Bulgaria

01.02.2018 14:21

The European Commission Has Approved BSE’s Purchase of the Energy Exchange, Payment is Pending

AUTHOR: publics.bg

The share price agreed on by the BSE and the energy exchange is 5.2 million BGN. 4 million BGN of it will be paid upon the conclusion of the share transfer agreement and rest 1.2 million BGN will be paid in three equal tranches.

On 31 January 2018 Bulgarian Stock Exchange – Sofia AD (BSE, the Exchange) received a letter from Bulgarian Energy Holding EAD (BEH) informing of an official notification from the European Commission, by which it approves the stock exchange as a buyer of the energy exchange.

The Commission’s decision (Decision C(2018)527) is from 26 January. The Commission is of the opinion that BSE is an appropriate buyer of Independent Bulgarian Energy Exchange EAD (IBEX) because it has the financial resources, expertise and motivation necessary to develop IBEX as an independent and competitive energy market; as a market operator with more than a twenty-year history in maintaining and operating a market infrastructure, BSE has experience related to the trade platform and IT services, and has a vision for the expansion of the products provided by IBEX. The Exchange is also licenced by the Financial Supervision Commission and complies with European and national legislation in the field of financial markets.

In relation the foregoing, the European Commission has approved Bulgarian Stock Exchange – Sofia AD as buyer of IBEX.

The Commission’s decision was the last mandatory requirement in order for the share transfer agreement between BEH and BSE-Sofia to enter into force.

The payment of the initially negotiated price is now pending as well as the provision of an unconditional revolving bank guarantee for the rest of the purchase price. Then the sale will be finalised by transferring Independent Bulgarian Energy Exchange EAD shares to BSE-Sofia AD.

As Publics.bg had previously reported, the share price agreed on by the BSE and the energy exchange is BGN 5.2 million. BGN 4 million of it will be paid upon the conclusion of the share transfer agreement and rest BGN 1.2 million will be paid in three equal tranches of BGN 400 000 in the end of the sixth, twelfth and eighteenth month after the signing date of the share transfer agreement.