03.5.2007

AIG acquires a 65 percent stake in Bulgaria's telecom

SOFIA, Bulgaria: AIG Global Investment Group agreed Thursday to buy a 65-percent stake in the Bulgarian Telecommunications Co. for €1.08 billion (US$1.47 billion), the Bulgarian company announced Thursday.

The 65-percent stake in the former state telecommunications monopoly is currently owned by Viva Ventures, the investment arm of Boston-based private-equity firm Advent International Corp., and Iceland's Novator Holdings.
"Novator and Viva Ventures have signed an agreement with AIG Global Investment Group for the acquisition of 65 percent in BTC," Novator and BTC said in a statement, adding that AIG was expected to secure an additional 25 percent in the company shortly as part of the agreement.

"The acquisition of BTC fits well into our strategy of investments in this growing region and builds on our extensive previous experience in Bulgaria and the telecom sector," said Pierre Mellinger, who has overall responsibility for AIG Capital Partners' private equity activity in Central and Eastern Europe.
The deal values BTC at €1.66 billion (US$2.24 billion) and is believed to be the largest private merger and acquisition transaction in Bulgaria to date.
BTC was put on the block in January by Novator Holdings, which has the option to buy Viva Ventures Holding GmbH, the holding company that owns 65% of BTC.
Novator, which is controlled by Icelandic billionaire Thor Bjorgolfsson, appointed Lehman Brothers earlier in the year to explore its options, including the sale of the stake.

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