The government plans to upload its energy companies to exchange

State energy companies will need to be prepared to report and to its investors each quarter of the BSE

Having declared that it would close the Bulgarian Energy Holding (BEH), Council of Ministers is preparing to launch on 15% of its subsidiary National Electricity Company (NEC), Bulgargaz and Kozloduy NPP for trading on the stock exchange. „We want the most rapid means shares of these companies to go on exchange and their activity becomes prozrachna“ explained Deputy Prime Minister and Finance Minister Simeon Diankov to bTV. More important question however is: what will be interesting?
The idea is not new and was set to GERD in the program before the election, then talked about the unification of all contributions from the majority in one State holding and release for marketing of 10-15% of their capital on the Bulgarian Stock Exchange (BSE ). In its first 15 anti-crisis steps does the new government has talked of listing of 10% of the BEH. Now the last option (after spontaneously stated late last week by Boyko Borisov premiere intention to close the energy holding company as appropriate) of the Exchange is to go for 15% of major companies and BEH this to happen as quickly as possible.

Brokers and investors certainly welcome any idea of privatization through the stock market. They well remember the excitement around the stock exchange last major privatization – the BTC, which boosted the overall market. But now the situation in financial markets is quite different and similar large-scale move must be considered quite carefully.

First in time for the global financial crisis, stock prices are low and investor interest. Therefore, if you really take the upload speed of energy exchange of state monopolies (by the end of the year or early next), this may happen before the economy and the stock exchange to begin to revive. Broadly this means that the country will be able to take less money for the sale of its shares than if you wait for better times.

Another thing would be further discouraged potential investors are deteriorating performance of part of energy companies. NEC reported a loss for the first six months / but in contrast BEH raportuva a solid profit / but if it remains uncertainty about government policy in energy and increased regulation, it may swell. Indeed, current practices of NEC and Bulgargaz to subsidize loss-making state enterprises as Kremikovtzi would cause lifting of eyebrows among stock investors. To allow the state to attract more interest, it will have to clear any such question, and to specify their plans for Belene NPP.

Of course, the government has a lot of time to deal with these problems and points to offer investors on the stock exchange companies much more attractive appearance than it appears now. Then hem the market will enjoy a large and transparent company, both the state (of course the taxpayer) will get a good price for its assets.

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Finance