The joint privatisation of Bulgarian Stock Exchange AD - Sofia (BSE) and Central Depository AD (CDAD) has been withdrawn with a decision of the Ministry of Finance (MoF). The main reason emphasised by MoF is the "significant time passed between the Government's decision for approving the document entitled "Concept for the Integration of Bulgarian Stock Exchange - Sofia AD and Central Depository AD into the European and World Financial Markets" and the delegation to the Privatisation and Post-Privatisation Control Agency (PPCA) to organise the privatisation procedure with respect to both entities". Another reason pointed out by MoF is the "changed investment environment in the country".
Based on the above, the Executive Board of PPCA has terminated the contract for performing marketing activities, preparing analysis on the legal standing, information memorandum and a privatisation assessment of BSE and CDAD, signed with Patria Corporate Finance a.s., Prague, Czech Republic at the beginning of December 2012. The Supervisory Board of PPCA has further recommended to the agency's Executive Director to undertake all necessary actions to terminate the privatisation procedure.
The Concept for the Integration of Bulgarian Stock Exchange - Sofia AD and Central Depository AD into the European and World Financial Markets, adopted by the Council of Ministers in April 2011, provided for the bundled sale of BSE and CDAD to a strategic investor. The state-owned stake of BSE is 50.0542%. In addition to the state's 43.70% stake in CDAD, BSE holds an additional 6.61%. The potential buyer of BSE and CDAD would have then controlled more than 50% of the capital of both companies. MoF entrusted PPCA with the joint privatisation of the two institutions in March 2012.
Impact on investors: The privatisation of BSE and CDAD, now withdrawn, was seen as an important step towards the modernisation of the market infrastructure and the attracting of new investors.