VTB Capital launches sale of Vivacom

28 Oct 2015

VTB Capital, the investment-banking arm of Russia’s VTB, has confirmed that it has hired an unnamed advisory firm for the sale of Bulgarian telco Vivacom (registered as Bulgarian Telecommunications Company [BTC]), Reuters reports. VTB Capital was able to launch the sale process as it acted as a facility and security agent for a EUR150 million (USD165.6 million) bridge financing loan given to InterV Investment, a Luxembourg-based indirect holding company of Vivacom. The loan was secured via a share pledge of 100% of InterV shares, which were all transferred to VTB Capital after InterV defaulted on its loan repayments in May 2015. VTB Capital AD’s CEO Milen Veltchev said: ‘We hope to see this process resolved swiftly … We are confident in recovering the amount owed. Vivacom remains a robust business with solid financials and healthy balance sheet.’

TeleGeography notes that as of June 2015, Vivacom was wholly-owned by Viva Telecom Bulgaria, itself a subsidiary of Luxembourg-based V2 Investment via holding company InterV Investment. V2 Investment meanwhile is wholly-owned by V Telecom Investment, with its main shareholders listed as follows: LIC Telecommunications (previously known as SHCO 79, 43.3%), Crusher Investment (33.3%) and former creditors of the telecom (23.43%).

Bulgaria, Vivacom (BTC)