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Business Industry Capital
ISSN 1311-364X
Thursday, 21 September 2017, Issue 4553
  Bulgaria   Bulgarian Industrial Association   World   Discover Bulgaria BIC Capital Market Ltd. 


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BNB Exchange Rates
(21.09.2017)
  EUR   1.95583  
GBP   2.20549
USD   1.62891
CHF   1.69600
EUR/USD   1.2007*
ECB exchange rate
Basic Interest Rate
  as of 01.09   0 %  


Bulgarian Stock Exchange - Sofia - 20.09.2017
  Total turnover (BGN): 1 780 160.68  
Traded companies: 45
Premium 163 044.60
Standard 1 516 438.65
REIT 71 667.99
Structured 18 888.02
Bonds 10 121.42
Biggest change
Solarpro holding JSC - Sofia 10.00 %
Aroma PLC JSC - Sofia -5.21 %
BaSE - Shares: 109 553.91

Agents involved in the sale of agricultural raw materials, live animals, textile raw materials and semi-finished goods
BEIS rating
Top 10 companies by
Fixed
Assets
for 2015
(thous. BGN)
  
  1   Viand SPJSC - Sofia   12 866  
  2   Varex LTD - Sofia   10 336  
  3   Statev - Stanimir Nedyalkov ST - Dobrich   2 094  
  4   Dunav 57 JSC - Silistra   2 068  
  5   Zolumovi SPJSC - Vratitsa   1 233  
  6   Belor Bulgaria JSC - Varna   648  
  7   A.N. Agrotrading LTD - Sofia   484  
  8   Agrobroker Grup SPLTD - Varna   181  
  9   Timac Agro Bulgaria SPJSC - Sofia   66  
  10   Eco Mashrooms JSC - Varna   10  
Make your own Bulgarian companies rating in BEIS

Certificated
Bulgarian companies

General meetings today
  Filipovi 2000 JSC - Stara Zagora
Financial House Еver JSC - Sofia
Generali Insurance JSC - Sofia
Han Kardam LTD - General Toshevo
Herti JSC - Shoumen
Neohelt JSC - Sofia
Parvomay BT JSC - Parvomai
Tech park Optela JSC - Plovdiv
Varna Towers LTD - Targovishte
 
Forthcoming General Meetings



Financial news

The total hourly labour cost grew by 10.6% in industry, by 11.5% in services and by 4.7% in construction, according to preliminary data of the National Statistical Institute (NSI) for the second quarter of 2017. The breakdown by economic activities showed that the highest annual growths in total labour costs were recorded in ‘Real estate activities’ - 16.8%, ‘Administrative and support service activities’ - 16.1%, ‘Professional, scientific and technical activities’ - 14.6%. The lowest increase in total labour costs was observed in ‘Construction’ by 4.7%, ‘Electricity, gas, steam and air conditioning supply’ by 5.0% and ‘Financial and insurance activities’ - 5.7%. In the structure of the total labour costs, the wages and salaries costs per hour worked grew by 10.7% in comparison with a year earlier, while the other (non-wage) costs rose by 12.4%. Among the economic activities in the second quarter of 2017 compared to the second quarter of 2016 the growth rate of wages and salaries component ranged from 4.7% in ‘Electricity, gas, steam and air conditioning supply’ to 17.0% in ‘Real estate activities’.

Source: Banker

In an attempt to overcome the demographic crisis and the lack of staff in Bulgaria, the Cabinet will offer serious relief for companies wishing to hire foreigners from outside the EU. Seasonal workers, who are now employing a 90-day work visa, will now be able to stay in the country for up to nine months. The blue card, which is used by highly qualified third-country professionals, will be valid for 4 years instead of one year and will apply to all professions. The fee paid by the employer to the Employment Agency will fall four times - to BGN 100. Apart from the Ministry of Interior, the companies pay another BGN 145 fee. Companies are required to pay to these cadres at least three times the country's average salary. This means that the minimum wage for a specialist should be around BGN 3,000. The law requires that foreigners be hired only if they are no more than 10% of the total staff in the last 12 months. It is not clear whether this law will also be dropped.

Source: Novinite.com



Companies

The State Consolidation Company (SCC) will try to acquire the shares of Dunarit on a market basis – by public auction, said Minister of Economy Emil Karanikolov. As a reason, he pointed out different receivables from what Dunarit already paid to Corporate Commercial Bank - BGN 47 million, or a total of BGN 50 million with the interest. These are CCB receivables from Hedge Investment Bulgaria, and joint liability also includes Avionams and Kemira, which are joint debtors. According to the Commercial Register, currently Kemira is 100%-owner of Dunarit. Receivables were redeemed by the State Consolidation Company for a total of BGN 67 million - BGN 38 million for Hedge Investment Bulgaria directly to CCB and BGN 29 million for receivables backed by assets of Avionams. In fact, the sale price of the total receivable for Hedge Investment Bulgaria (plus the guarantee by the assets of the debtor Avionams) was BGN 60 million.

Source: expert.bg

The Independent Bulgarian Energy Exchange (IBEX) said it is offering all its members access to its new web-based Clearing and Settlement System (CASS). It has already been successfully implemented in the Nordic, Baltic, UK, and German markets. The CASS system, set for launching byend-October, will provide a single web-based clearing and settlement interface and a new collateral model calculation. The aim of the new collateral model calculation is to produce a collateral requirement that easily and realistically reflects risk in the member's trading behaviour. The model will be stable in reference to the daily collateral calls and will keep administration and following up on daily collaterals to a minimum. Moreover, after the launch of the intraday market, the trading results will simply be added to the results of day ahead market and a single collateral call will be generated for both market segments.

Source: publics.bg

The Telecommunication Operator Mobiltel (Mtel) will have a new name - A1. This is clear from the announcements of the owner of the company - Telekom Austria Group. The idea of the Austrian giant is to rebrand all of its divisions in the different countries in which it operates by uniting them under a new name - A1. This is the name of the brand in Austria, and the decision to impose it everywhere is based on an in-depth analysis of the market environment and the marketing landscape that shows the potential and strengths of A1 as a powerful international brand covering all ICT aspects - mobile, fixed, data and cloud solutions. According to Telekom Austria Group, a common experience and unified offers will be provided to all over 24 million customers. But the measure will also strengthen the group's position amidst the constant consolidation of European telecoms markets. The A1 brand has already been successfully introduced in Slovenia, and it is now due to be applied to its other subsidiaries, Croatian, Serbian and Macedonian, under the name of VIP, Belarusian Velcom, and Bulgarian Mtel.

Source: Banker

Bulgaria's competition regulator said the notified acquisition of Bulgaria’s AP Retail I, owner of The Mall shopping centre in Sofia, by Balkan Retail, a subsidiary of UK-based investment company Hystead Limited, falls outside the scope of its regulatory competences. In July, Hystead Limited has reached an agreement to acquire AP Retail I for a total of EUR 156 million. The deal does not fulfil the minimum conditions concerning the two companies’ turnover in the country to require clearance from the Commission for Protection of Competition. Under Bulgarian competition law, concentration is subject to mandatory prior notification to the competition authority when the combined turnover of all companies participating in the concentration in Bulgaria in the preceding financial year exceeds BGN 25 million. The concentration must also fulfil one of the following two conditions: either the turnover in Bulgaria of each of at least two of the undertakings participating in the concentration during the preceding financial year should exceed BGN 3 million, or the turnover in Bulgaria of the undertaking – subject to acquisition should exceed BGN 3 million during the preceding fiscal year. Located in Sofia, The Mall covers 52,000 sq m, 99.7% of which occupied by the nearly 200 tenants.

Source: SeeNews

Bulgarian machine engineering company Hydraulic Elements and Systems (HES) expects its sales in the January-September period to increase by 17.60% on the year to BGN 41.3 million. In September alone, the sales are expected to amount to BGN 4.8 million. In the first eight months of the year, HES’ sales revenue rose by an annual 17.27% to BGN 36.5 million. In August alone, sales totalled BGN 2.9 million. The company’s gross profit increased 22.22% year-on-year to BGN 3.8 million in the first eight months of the year. In August alone, HES posted a gross profit of BGN 130,000. HES is a subsidiary of blue-chip industrial group Stara Planina Hold.

Source: investor.bg

Gulbanis Wine invested nearly BGN 500 thousand in the construction of its own boutique winery in Gorski Dolen Trambesh. It is finished and fully equipped. The administrative procedures are about to be finalised and a license to operate from next year is to be acquired, explained Deyan Zhekov - manager of Gulbanis Wine. The winery was made entirely with own funds and its construction started two years ago. Its capacity is 200 tons of grapes or 100 tons of wine, which will practically close the entire production cycle. The grapes plantation of the winery is situated on the slopes of Gorski Dolen Trambesh above the Yantra River. Vine planting started gradually in 2008, and today it reaches 420 decares with different varieties of grapes.

Source: Borba - Veliko Tarnovo



       Bulgarian Industrial Association

 

 

       World

Europe

Theresa May would offer to fill a post-Brexit EU budget hole of at least EUR 20 bln this week, the first attempt by London to meet European demands to settle its divorce bill. Olly Robbins, the prime minister’s top EU adviser, has contacted his counterparts in several European capitals to reassure them Mrs May’s speech on Friday in Florence would include the financial offer, according to officials briefed on the discussions. Mrs May’s team is hoping the offer will break a three-month deadlock in Brexit talks with Brussels and allow them to move to a second phase of negotiations that would open discussions about a future trading relationship between the EU and the UK. UK officials have indicated Britain would ensure no member state would have to pay more into the EU budget or receive less money from it until 2020, the end of EU’s current long-term budget planning period. The expected hole in those two years after Brexit would be at least EUR 20 bln when payments the UK receives back from Brussels are excluded.

Source: FT

America

T-Mobile and Sprint are in active talks about a merger, according to people close to the situation. Both companies and their parents, Deutsche Telekom and Softbank, have been in frequent conversations about a stock-for-stock merger in which T-Mobile parent Deutsche Telekom would emerge as the majority owner. People close to the situation stress that negotiators are still weeks away from finalizing a deal and believe the chances of reaching an agreement are not assured. The two sides have not yet set an exchange ratio for a deal, but are currently engaged in talks to hammer out a term sheet. The companies declined to comment on the report. T-Mobile and Sprint have had a seemingly endless dalliance over the years since Softbank took control of Sprint, pushed by the prospect of billions of dollars in cost synergies that a merger would bring. The last time the two companies held meaningful talks earlier this year, Softbank's Masayoshi Son indicated a willingness to sell Sprint to T-Mobile. This time, given the all-stock nature contemplated, Softbank would emerge as a large minority holder in any combination.

Source: CNBC

Asia

Toshiba Corp is shifting back toward selling its prized semiconductor unit to a group backed by joint venture partner Western Digital Corp, people familiar with the deal said. Just days ago the Japanese firm said it was leaning toward a rival bid for the $18 billion business that includes a South Korean chipmaker. California-based Western Digital made key concessions to assure Toshiba it would not seek future control of the chip business, addressing antitrust concerns, said the sources, who asked not to be named as the discussions are private. That had turned the tide away from the bid led by U.S. private equity firm Bain Capital LP and SK Hynix Inc. Toshiba board members are to meet Wednesday, but it was unclear whether they could reach a decision, after saying last Wednesday the company was accelerating talks with the Hynix group. That announcement marked the third time Toshiba had missed targets to sell the business - the world’s second-biggest producer of NAND memory chips. The company needs the cash to plug a giant hole in its finances left by its bankrupt U.S. nuclear unit Westinghouse Electric Corp.

Source: Reuters

 
Indexes of Stock Exchanges
20.09.2017
Dow Jones Industrial
22 412.59 (41.79)
Nasdaq Composite
6 456.04 (-5.28)
Commodity exchanges
20.09.2017
  Commodity Price  
Light crude ($US/bbl.)50.69
Heating oil ($US/gal.)1.8100
Natural gas ($US/mmbtu)3.0800
Unleaded gas ($US/gal.)1.6500
Gold ($US/Troy Oz.)1 301.70
Silver ($US/Troy Oz.)17.11
Platinum ($US/Troy Oz.)942.00
Hogs (cents/lb.)60.02
Live cattle (cents/lb.)1.16

       Discover Bulgaria

September 22 – Bulgaria’s Independence Day

30 years after Bulgaria’s liberation from Ottoman yoke, the effects of the Congress of Berlin July 1 (13), 1878 continued to lie heavy on Bulgarian people. The final rejection of the unfairly imposed clauses was not possible before 1908. The Young Turks’ taking the power in Turkey and the Austrian intention to annex Bosnia and Herzegovina favoured Bulgarian position. The diplomats decided to proclaim the country’s Independence right after the annexing finding this moment for the most suitable one. The whole preparation for the ceremony was performed in measures of extraordinary security and secrecy. Despite Russian dissent, in the morning of September 22, 1908 prince Ferdinand and the politicians went into the church St. 40 Martyrs in Veliko Tarnovo where a divine service was carried out. When the service ended prince Ferdinand read an edict proclaiming Bulgaria for Independent Kingdom and its sovereign for Bulgarian King. The people who witnessed the ceremony were truly astonished and the news ignited tremendous and spontaneous joy among the Bulgarians. Proclaiming the independence gave Bulgaria the right to be treated equally in the international relations. Gradually the monarch’s position became consolidated. The prince’s edict directly reflected on the European political situation. The Bulgarian Independence’ proclaiming was a manifestation of the independent Bulgarian spirit and was an important step towards the consolidation of the Third Bulgarian State.


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