site.btaCompetition Protection Commission Institutes Proceedings about Possible Wrong-doing in Change of Control of BTC

Competition Protection Commission Institutes Proceedings about Possible Wrong-doing in
Change of Control of BTC

Sofia, January 14 (BTA) - The Commission for Protection of
Competition (CPC) has opened a proceeding into possible
wrong-doing by means of changing the control of the Bulgarian
Telecommunications Company (BTC), CPC said in a press release.

The press release says that the CPC has received an alert by the
Executive Director of the Technological Centre - Institute of
Microelectronics AD (TC-IM) about suspected concentration in the
meaning of Article 22 of the Competition Protection Act (CPA)
by acquiring control in BTC on the part of SHCO 79 S.a.r.l.
Luxembourg, without a permit to this effect issued under the
terms and conditions of the CPA.

Based on a described structure of ownership in BTC, it is
claimed that TC-IM is the end company from the Bulgarian side,
holding the biggest package of shares in the BTC. It is said
that in early November 2014, TC-IM concluded with the Corporate
Commercial Bank a pledge contract by virtue of which TC-IM
provides as collateral to the bank all shares held thereby in
Technotelinvest AD, and has thus been deprived of the
opportunity to exercise legal or actual control in
Technotelinvest AD and Bromak Telecom Invest AD.

The alert claims that after the Corporate Commercial Bank was
placed under special supervision, Bromak Telecom Invest AD
tarnsferred its shares in V TelecomInvestment General Partner
S.A. and V TelecomInvestment S.C.A. to SHCO 79 S.a.r.l.
Luxembourg. The alert says that TC-Im as a company end owner in
Bulgaria of the majority package fo shares in BTC had not been
notified about the transfer.