German-Indian consortium to buy 70 per cent in state-run Bulgarian shipping company

16 May 2008

KG Maritime Shipping, a German-Indian consortium, will acquire a 70 per cent stake in Bulgaria's state-run merchant marine operator Navigation Maritime Bulgaria (Navibulgare), for 225 million euros ($349 million).

The Bulgarian-registered consortium KG Maritime Shipping, the sole remaining bidder, is majority (70 per cent) owned by German and Indian shipping companies.

KG Maritime Shipping put in the only valid bid for the shipping companies, although 24 parties bought tender documentation last year.

German-registered KG Maritime Partners, owned by Duesseldorf-based Martrade Transport & Shipping GmbH and Mumbai-based Accord Ship Management (Pvt) Ltd holds 70 per cent in the consortium. The remainder is held by Bulgarian firm Advance Properties Sofia, controlled by brothers Kiril and Georgi Domuschievi.

The privatisation contract has to be signed within 60 days, prime minister Sergei Stanishev said in a government press note.

KG Maritime Shipping offered 440.1 million leva for the majority stake. It will also invest 779.9 million leva over the next 10 years, including in the acquisition of 25 new ships and modernise Navibulgare's existing fleet.