|
 |
|
|
|
South-East Europe The most comprehensive on-line focus on Greece's business interests, investments, trade relations and corporate
activities in the rapidly-developing Balkan region as well as
Turkey During his annual speech on the Greek economy at the Thessaloniki International Fair on September 9, 2005, Prime Minister Costas Karamanlis referred to recent developments of particular importance to northern Greece: the agreements signed with Russia and Bulgaria for the construction of the Burgas-Alexandroupolis oil pipeline, and for the commencement of work on the Greece-Turkey natural gas pipeline; the planned undersea pipeline to convey natural gas from Greece to Italy, and from there to the heart of Europe; and the speeding of rail links between Thessaloniki, Sofia and Istanbul.
INVbg: Invest in Bulgaria
Greece: springboard to South-East Europe "Greece's role as the economic engine of South-East Europe creates a significant multiplier effect for businesses that want to operate throughout the Balkan region and benefit from regional market access. As Greece's neighbours develop market economies, create a new generation of entrepreneurs, and generate an important consumer base, businesses based in Greece enjoy multiple advantages... The transport hubs of Athens and Thessaloniki put executives in regional offices or plants within hours. The PATHE Motorway, the Egnatia Highway, the new Athens International Airport, and Greece's shipping dynamism translate into huge logistics advantages for market penetration. The total consumer population of the Balkans and the Black Sea region is estimated at 320 million persons with a GDP of USD 2,296 billion. More than 2,500 Greek companies have invested in sectors that show favourable growth prospects and that are in need of improvement and upgrading.... Among the many areas of investment are information technology and telecommunications, banking and finance, food and beverages, energy and petroleum products, retail and wholesale trade, construction, basic metals, building materials, packaging and packaging equipment, tobacco, agriculture, and fishing. Other sectors such as tourism, logistics, healthcare, and consulting will grow hand in hand with market development... We urge you to consider Greece as a springboard to South-East Europe and discover how your business can prosper as a regional player and benefit from the multiple advantages growth markets offer." -- Hellenic Centre for Investment (ELKE), June 2005 Since December 1998, INVgr has been publishing information and business intelligence on the corporate activities, investments, expansion plans and business interests of Greek companies, investors and entrepreneurs active in South-East Europe. This English-language intelligence is only available to INVgr's subscribers. A few excerpts of the information on file can be found below. INVgr's special section on South-East Europe also focuses on Greece's trade relations with countries in the region and includes several launch pads with hyperlinks to useful English-language corporate, governmental and non-governmental Web sites and portals that will give you a head start when investing in or doing business in or with this rapidly-expanding, dynamic region of Europe. "Regional co-operation among the Balkan states becomes a major political priority, in view of the perspective of stability, development and incorporation of the South-East European countries in the EU Interbalkan co-operation initiative has been designated as a strategic decision by the Balkan states, as it constitutes an honest and feasible mechanism of regional coexistence and co-operation which can only eventuate in the improvement of political, economic and business relations." -- Adam Regouzas, Deputy Minister, Ministry of Economy and Finance, Greece Greece is the only nation in South-East Europe that is part of the euro-zone, although several countries and territories in the region already use or have adopted the euro as their currency. Partly due to its strategic location and the fact that it is currently the only EU-member country in the Balkans, Greece has become the springboard for investing and doing business in South-East Europe. "At the Thessaloniki Summit [in 2003], the European Council clearly recognised the aspirations of the countries of the Western Balkans to join our Union. We endorsed their right to join us, provided that they meet the conditions for entry. We also agreed proposals to enrich our policy with new instruments like twinning, borrowed from the Accession Countries' experience. We will also introduce this year [2004] new European Partnerships for each country, spelling out clearly priorities for action both in the short and medium term. We have not just restricted ourselves to a political strategy. We have also helped the Western Balkans in more practical ways. European tax payers are paying out a total of around EUR 5 billion over the period 2000-2006 for the Western Balkans. Germany has obviously contributed a great deal of these resources, as well as being a generous bilateral donor in its own right. In addition, we have introduced the so-called Asymmetric Trade Measures (ATMs) which have opened up our markets to goods from the Western Balkans without any reciprocal access to their markets. As they move down the road towards membership they will have to allow our producers to sell into their markets, but we allowed them to start the process on a unilateral basis." -- Christopher Patten, External Relations Commissioner, addressing the European Affairs Committee, German Bundestag, Berlin, April 28, 2004 Two countries in the region -- Bulgaria and Romania -- are determined to become full members of the European Union on January 1, 2007, while Croatia hopes to enter the EU by 2009. Furthermore, Greece officially supports Turkey's rapprochement with the EU, while Greek-Turkish relations have recently entered into a new 'orbit'. The Republic of Cyprus, meanwhile, already is a member of the EU since May 1, 2004 -- a major step forward and indeed a historic moment for the Greek-Cypriot republic that has very close ties with Greece. "If there's one area in which the outward-looking nature of Greek economic diplomacy has shown spectacular results in recent years, it is the Balkans." -- Euripides Stylianidis, Deputy Minister of Foreign Affairs. More than 3,500 Greek-run or Greek-owned companies, mainly subsidiaries of firms based in Greece, are currently operating in the Balkans. Those enterprises and entrepreneurs have invested more than EUR 6 billion of Greek capital and created 200,000 jobs in the Balkans, according to Stylianidis. Greece's outward-looking economic policy focuses on four main areas: the Mediterranean basin, the Middle East, and the Arab world; Turkey; the Black Sea and Caspian region; and the Balkans. INVgr welcomes your feedback, ideas, articles, company news or suggestions! (Click here to E-mail us).
Start here: Greece-Turkey: Greece-China:
INTERSPORT expands into Bulgaria
June 13, 2006 -- Following the successful launch of INTERSPORT stores in Greece and Romania, ATHEX-listed Fourlis Holdings SA is expanding its athletic goods retail activities in Bulgaria. The country's first INTERSPORT store, situated in Sofia's biggest shopping mall, opened on June 9, 2006. With retail space of 700 square metres, the store offers a large variety of labelled athletic goods as well as INTERSPORT's own-label line of goods. INTERSPORT's expansion plans in neighbouring Bulgaria calls for the opening of a total of five stores within the next three years. Source: Fourlis Holdings SA.
Eurobank EFG buys out Serbian government's minority stake in National Savings Bank
March 17, 2006 -- ATHEX-listed Eurobank EFG has gained control of 100% of Nacionalna štedionica - banka, Serbia's National Savings Bank, following the signing of an agreement with the Serbian government to acquire the remaining 37.7% of NSB's share capital held by the Republic of Serbia, for EUR 35 million. Mladjan Dinkic, Minister of Finance of the Serbian Republic, and Nicholas Nanopoulos, Chief Executive Officer of the Athens-based Eurobank EFG group, signed the agreement today in Belgrade. In September 2005, Eurobank EFG had successfully acquired a 52.5% stake in NSB through a public takeover-bid process -- which then allowed it to become owner of 62.3% in NSB. The signing of today's agreement that transfers the shareholding and control of the Serbian bank to the Eurobank EFG group paves the way for the merger of NSB with EFG Eurobank A.D. Beograd, creating "one of the largest and most innovative banks in Serbia that will offer comprehensive service to Serbian businesses and individuals" throughout the country," according to a statement released by the Greek banking group. The merged Serbian bank will be focusing on retail and corporate banking activities for small and medium-sized enterprises (SMEs) as well as large corporate clients. Commenting on the signing of this agreement, Serbian Minister of Finance Mladjan Dinkic and Ambassador of Greece to Belgrade Christos Panagopoulos welcomed the agreement as "further evidence of the excellent relations between the two countries". Eurobank EFG is the second-largest bank in Greece with assets of over EUR 46 billion. Founded in 1990, Eurobank EFG has received high marks from international rating agencies such as Standard & Poor's, Fitch and Moody's, not only for its financial strength, but also, for the Group's client focus, high quality of services, its heavy investment in modern technologies and its professional and dynamic management and personnel. Eurobank EFG offers a comprehensive array of banking products and services for individuals, corporations, small businesses and institutions. It currently employs more than 16,200 people in Greece and abroad and will be running a distribution network of over 1000 branches and alternative distribution channels by year end. As a member of the Geneva-based EFG Group it has access to many European markets. Apart from its domestic market, Greece, Eurobank EFG operates in Bulgaria, Romania, Poland, Turkey, Cyprus and Serbia and Montenegro. The bank follows the same vision everywhere -- "to be the bank of first choice for its customers, while operating responsibly towards its shareholders and society". It currently has a network of over 400 branches in New Europe and it aims to have over 500 branches developed in the region by the end of 2006. By acquiring Postbank in 2003, Eurobank EFG emerged in Serbia and Montenegro. In the following years EFG Eurobank a.d. Beograd has invested significantly into further developing its distribution network, which amounted to 29 branches by end of 2005. It is worth noting that the National Bank of Serbia, ranked it as one of the major contributors to the branching of banks' organisational network in Serbia. Also, the number of EFG Eurobank a.d. Beograd employees has been increased from 40 people in 2003, to 550 professionals by the end of 2005, which makes the bank one of the major job creators among foreign entities operating in Serbia. With its acquisition of 100% of Nacionalna Stedionica Banka (National Savings Bank), Eurobank EFG Group has become one of the strongest banking organisations in Serbia. Currently, it employs 1,400 people and runs a network of 99 branches all over Serbia. The Group has invested over EUR 215 million in the country (including the recently announced capital increase). Based on current volumes, the new bank that will be created following the legal merger will command combined Total Assets of EUR 359 million, Deposits of EUR 213 million, and Loans of EUR 161 million and Shareholders' Funds of EUR 136 million. Eurobank EFG also initiated its significant donation plan for Serbia in the areas of Health, Education and the protection of the Environment. The above initiative is worth EUR 3 million. From this amount, EUR 1 million has already been disbursed for the Clinical Centre of Serbia to help it purchase the equipment needed to set up the new "Belgrade" National Centre for Positron Emission Tomography, a project of nationwide importance in the field of nuclear medicine. Sources: Eurobank EFG, INVgr.
Global Finance SA launches new regional Private Equity Fund for South-East Europe March 15, 2006 -- Global Finance, the leading South-East Europe private equity management firm, has established its eighth private equity fund in the region, South-Eastern Europe Fund (SEEF). SEEF has had a successful first closing at EUR 197 million. Global Finance anticipates having subsequent closings to raise more than EUR 300 million in total, following which the total funds raised by Global Finance would get close to EUR 1 billion. SEEF will primarily consider control investments and regional expansion opportunities supporting professional management teams. The funds were committed by a group of top-tier Greek and international institutional and private investors, including existing Global Finance investors as well as new ones. Strong investor interest confirms both the attractiveness of the region as well as Global Finance’s performance record and reputation. With offices in Athens, Sofia and Bucharest, Global Finance has been investing in South-East Europe since 1991. Global Finance has established a preeminent position in South-East Europe raising more than EUR 700 million for investments focusing primarily in Greece, Romania and Bulgaria. Sources: Global Finance, INVgr.
Jumbo SA to expand in Cyprus, Bulgaria and Romania
13,000 m2 toy megastore in Sofia to open in 2007 March 2, 2006 -- Jumbo SA, Greece's leading toy retailer, is planning to invest EUR 80 million in Bulgaria over the next two years. With major plans of launching a chain of Jumbo toy megastores in Greece's neighbouring country, the ATHEX-listed firm is already developing its first retail outlet of approximately 13,000 m2 in Sofia, which is expected to open in 2007 and being built on Jumbo's own plot of land. It is currently seeking other sites to lease or purchase in Bulgaria, Cyprus and Greece in view of its strategy to roll out its retail network. It is also interested to enter the Romanian market. In Cyprus, its subsidiary Jumbo Trading Ltd. is developing a 7,000 m2 megastore in Larnaca, which will be the company's fourth store on the island. Jumbo is already the leader in its domestic market, where it operates 41 stores and has a strong brand name ("Jumbo"). Within the next two years, the firm plans to expand its retail network to 50 outlets, four of which will be megastores in Attica. Six new stores are planned for 2006 -- one in Cyprus, one in Athens and four in the rest of Greece. A total of 48% of Jumbo's revenues is derived from toys, while the firm has for the past three years been reducing its dependency on toys (which are predominantly sold during the Christmas sales season) by diversifying its product line to include clothing and gifts.
In 1995, Athens-based Global Finance SA supported a local entrepreneur in his efforts to acquire control in four independent stores and start building the Jumbo chain. Formerly known as Babyland SA, the company grew to become the undisputed leader in the consolidating Greek toy retail market, covering all major cities in Greece and Cyprus. Jumbo created the infrastructure in purchasing, warehousing, inventory control and MIS that allowed it to maintain fast growth rates throughout this period. The company's shares have been listed on the Athens Exchange (ATHEX) since June 19, 1997, while Global Finance sold its participation in the company in 1999. Founded in 1991, Global Finance is an independent investment firm that pioneered private equity in South-East Europe. FMR Corp. and Fidelity International Limited announced that on February 28, 2006, Boston, Massachusetts-based Fidelity Small Cap Stock Fund increased its participation in Jumbo from 3.6% to 7.2% and is now the third-largest shareholder in the Moschato, Athens-based company. Source: INVbg.
New 400 kW electricity transmission line between Greece and Bulgaria to be built February 23, 2006 -- Greece and Bulgaria are to build a new electricity transmission line between the two countries. The 400-kilowatt, two-way line will supplement an earlier facility built in 1970, Greek Development Minister Dimitris Sioufas said today.
He was speaking after a meeting in Athens with Bulgaria's energy and finance minister, Rumen Ovcharov. The Greek side also said that ATHEX-listed Public Power Corporation SA (PPC) would be interested in co-operation in Bulgaria and establishing a presence in Greece's neighbouring country in the wake of its proposal to acquire the Bobov Dol thermal power plant (TPP), which is subject to a ruling from a Bulgarian court. Last year, the Greek state-run power supplier appealed against the stopping of the Bobov Dol privatisation procedure. PPC offered EUR 70.9 million to buy 100% of Bobov Dol and pledged to invest another EUR 34.4 million to upgrade it, outbidding Enel SpA of Italy. The privatisation procedure for the Bulgarian TPP triggered large-scale protests among miners who feared they would lose their jobs if the new owner was not required to purchase local coal. "PPC's presence in the entire region, starting from this proposal of an exceptionally large investment topping EUR 100 million, would further link not only the two countries' electricity systems, but also lead to closer ties in a sector that would determine the level of cooperation, growth and peace in the region as part of the South-East European energy community," Sioufas said. Ovcharov informed Sioufas that Bulgaria would no longer be able to export as much electricity as last year's figure of over eight billion kilowatt hours. Three billion of the total were purchased by Greece. The meeting between the two ministers was attended by the Bulgarian ambassador in Athens, Stefan Stoyanov. Sources: ANA, INVgr.
Piraeus Bank Group launches Balkan real estate fund
January 20, 2006 -- ATHEX-listed Piraeus Bank SA announced the formation of an international investment named Trieris Real Estate Fund focusing on property investments in the Balkans, in view of the positive growth prospects in the region. In a statement released yesterday, the Athens-based banking group said the new company's share capital will be at EUR 50 million, coming mainly from Piraeus Bank clients-investors. Trieris will focus on achieving capital gains by investing in real estate assets with high leasing returns and real estate development, especially in EU candidate countries. The launch of this real estate fund is part Piraeus Bank's strategy to strengthen its presence in the asset management sector, both in Greece and South-East Europe. The funds for investment will be managed by a bank subsidiary abroad. The Piraeus Bank Group's consolidated net earnings are expected to reach EUR 185-190 million for fiscal 2005, a 66% year-on-year increase. In 2004, the group reported earnings using international accounting standards of EUR 127.3 million. In 2005, the Piraeus Bank Group made a series of important strategic moves, which resulted in the expansion and enhancement of its presence in the region: the acquisition of Eurobank AD in Bulgaria, Atlas Bank AD in Serbia, and Egyptian Commercial Bank in Egypt. The Group's network of branches that are not located in Greece rose from 60 in 2004 to 176 in 2005. It employs a total of 2,633 people abroad.
CCHBC and The Coca-Cola Co. to acquire Serbian fruit juice producer Fresh & Co
January 20, 2006 -- Coca-Cola Hellenic Bottling Company SA (CCHBC) announced today that it has agreed to acquire, jointly with The Coca-Cola Company (TCCC), 100% of Fresh & Co, one of the leading producers of fruit juices in Serbia and Montenegro. The acquisition includes a production facility located at Subotica and the juice and nectar brands "Next" and "Su-Voce". CCHBC and TCCC had previously entered into negotiations to acquire this company in 2005, but ceased negotiations on the December 13, 2005. However, the opportunity to acquire the company, in line with CCHBC's investment criteria, presented itself once again and both CCHBC and TCCC have been able to move quickly in concluding negotiations. The net consideration for the transaction is EUR 19.5 million (including the settlement of some of the company's financial obligations but excluding acquisition costs) and is subject to the company's indebtedness at closing not exceeding EUR 23.1 million. The final purchase price is subject to certain adjustments. The transaction is subject to regulatory approval and is expected to be finalised by the end of February 2006. Commenting, Doros Constantinou, Managing Director of CCHBC, said, "We are delighted to have reached agreement in acquiring one of the leading fruit juices companies in this high growth region. The transaction is consistent with CCHBC's strategy of expanding into the non-carbonated segment of the non-alcoholic beverages market and we are delighted to welcome another high quality local brand to our system portfolio." CCHBC is one of the world's largest bottlers of products of The Coca-Cola Company and has operations in 26 countries serving a population of more than 540 million people. CCHBC shares are listed on the Athens Exchange (ATHEX: EEEK), with secondary listings on the London (LSE: CCB) and Australian (ASX: CHB) Stock Exchanges. CCHBC's American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE: CCH).
Cyclon Hellas SA to make Bulgarian and Romanian acquisitions
January 17, 2006 -- Cyclon Hellas SA yesterday announced it is about to acquire two companies in Bulgaria and Romania. Part of its strategy to expansion in the Balkans and Eastern Europe, Cyclon said it planned to buy 100% of oil product distributors Bulgaria Automotive Products Ltd. and Kartex Trading SRL (Vardinoyannis Group), Bucharest. Piraeus-based Moore Stephens Chartered Accountants SA has completed a due diligence inspection of both companies, while SOL SA is expected to complete an evaluation report to determine the value of the buys. Cyclon Hellas said the acquisitions would be financed with the proceeds of an asset liquidation of its wholly-owned subsidiary Avin Oil Trader N.E., which is currently under liquidation (since December 14, 2005). A newly-formed subsidiary of Cyclon Hellas, Arcelia Holdings Ltd., will buy the two firms in Bulgaria and Romania, according to the ATHEX-listed producer and trader of lubricants, packaged lubrication products and liquid fuels. Cyclon Hellas' headquarters are located in the northern suburb of Maroussi, on the outskirts of Athens. On November 7, 2001, Cyclon Hellas SA (formerly LPC Hellas SA) and Macedonian Plastics SA merged. The company was founded in 1974. Kartex Trading was established in 1994. Panagiotis Lapiotis is the Romanian company's director. Bulgaria Automotive Products was established in 2002. Sources: ANA, INVgr.
EFG Eurobank Group's takeover bid of National Savings Bank of Serbia (NSB) completed September 29, 2005 -- EFG Eurobank Group's takeover bid (TOB) to acquire 90.2% of the shares in Nacionalna štedionica - banka, Serbia's National Savings Bank, was completed today. Eurobank acquired 52.5% through this TOB process for approximately EUR 41 million, but the Serbian state did not offer Eurobank its 37% stake in the Serbian bank. However, the Serbian state did not reject a potential agreement for the sale of its stake to EFG in the future. EFG Eurobank Group now controls a 62.3% equity stake in NSB, which has a network of 70 branches throughout the country, and intends to raise its participation in the bank through capital increases in the near future. In a press release dated September 9, EFG Eurobank Group announced that it had received approvals from the National Bank of Serbia and the Serbian Securities and Exchange Commission to launch a TOB to acquire 90% of the shares in NSB. EFG Eurobank Group already controlled a minority stake of approximately 10% in NSB and on August 24 reached an agreement with private shareholders of NSB to acquire shares representing 49% of the bank's share capital for a consideration of approximately GBP 32 million. The TOB targeted a maximum 90.2% of the bank‘s shares. The price offered was CSD 627,540.80 per NSB share, compared to a face value per share of CSD 100,000, a book value per share of CSD 124,857.64 and a current market price of CSD 179,200 per share. EFG Eurobank Group perceives Serbia to be a market with great potential and of strategic importance for the development of its operations in Southern and Eastern Europe. The Group has already invested more than EUR 50 million in its subsidiary EFG Eurobank AD Beograd, which currently has built up a network of 20 branches. EFG Eurobank Group intends to combine NSB's existing commercial base and developed branch network with Eurobank's own know-how, financial strength and significant market experience. NSB will benefit from significant synergies both in the Serbian market and in the region and will aim at becoming one of the leading Serbian banks, focusing on retail and SME operations, continuously improving the quality of the services and fostering long-term client relationships. EFG Eurobank Group intends to expand the established products and services of NSB through the introduction of financial products it has already developed in other regional markets. If the current branch network of its subsidiary EFG Eurobank Beograd AD is included, the EFG Eurobank Group now operates a combined network of 92 branches nationwide, thus significantly strengthening its position in the Serbian banking market. David Watson, Director of EFG Eurobank Ergasias' International Division, commented: "Serbia is a core market for EFG Eurobank Group. Nacionalna štedionica – banka (NSB) is a healthy and promising bank which will allow us to significantly enhance our position in Serbian banking. We believe this is a very attractive offer to all NSB shareholders, including the Serbian state, and we are confident that is going to be met with great success, signaling a new era for NSB". Richards Butler, the international law practice, acted on the sale of the National Savings Bank of Serbia. The Richards Butler team was led by corporate finance partner Philip Taylor. Allen & Overy acted for EFG.
IMESE accepts applications for new academic year
September 8, 2005 -- The Institute of Management and Entrepreneurship of Southeastern Europe (IMESE) announced that it is currently accepting applications for the 2005-2006 academic year. These applications concern the following programmes:
IMESE is a Thessaloniki-based non-profit educational organisation, in which the Federation of Industries of Northern Greece and 20 of the largest companies in Northern Greece are partners. These leading firms are, in alphabetical order:
The institute's main aim is to further the personal and professional development of established executives as well as to educate and designate young talented people in business management. IMESE offers postgraduate-level educational programmes, emphasising the promotion and maintenance of close liaison with the business community. Studies are conducted in constant collaboration with company-members of the Federation of Industries of Northern Greece and embody a practical business orientation. The Chartered Management Institute of the UK, the leading organisation for professional management, is working in partnership with IMESE. Together, they support the leaders of the future, helping them improve their performance in order that they can deliver results in a dynamic world. Vassilis Takas is IMESE's President.
Alpha Bank SA completes Serbian acquisition of Jubanka
August 10, 2005 -- Alpha Bank SA completed its acquisition of Jubanka a.d. Beograd. The Greek bank's tender offer for the remaining ordinary shares of Jubanka that were held by hundreds of minority shareholders proved to be successful. Alpha Bank now holds a 97.14% equity stake in the seventh-largest bank in Serbia. Insiders estimate the total acquisition price to have reached EUR 171.5 million. The acquisition was initially announced on January 26, when Alpha Bank signed an agreement to purchase 88.64% of Jubanka from the Serbian banks' two major shareholders, the Republic of Serbia and Jugobanka, which respectively held 82.69% and 5.95% of Jubanka's ordinary shares, for a total consideration of EUR 152 million. Alpha Bank's strategy is to further expand its banking operations in South-East Europe.
OTE sells Bulgarian and FYROM mobile subsidiaries to COSMOTE
August 1, 2005 -- Hellenic Telecommunications Organisation SA (OTE) signed an agreement today with its subsidiary COSMOTE Mobile Telecommunications SA for the sale of OTE's equity stakes in mobile subsidiaries GloBul of Bulgaria and MTS, the wholly-owned holding company of Cosmofon of FYROM, to COSMOTE for EUR 490 million. OTE's participations in CosmoBulgaria Mobile EAD -- a wholly-owned subsidiary that trades under the name GloBul -- and in MTS Holding BV, a special-purpose vehicle registered in The Netherlands which owns 100% of the shares of Cosmofon Mobile Telecommunications Services AD Skopje, were sold to COSMOTE for EUR 400 million and EUR 90 million, respectively, which will be paid in two installments, the second of which will be transferred 40 days following the equity transaction. The transfer of the shares of MTS will take place on August 30, 2005. The transfer GloBul took place today, August 1. Market insiders believe that this agreement benefits OTE, since it enhances the Greek telecom multinational's cash position as well as the OTE Group's structure. OTE is the incumbent telecommunications provider in Greece, and together with its subsidiaries forms the leading group of companies in Greece in terms of revenue. OTE is among the largest companies listed on the Athens Exchange (ATHEX) and is also listed on the New York and London bourses. Through its investments in South-East Europe, both in fixed-line and mobile telecommunications companies, OTE addresses a potential customer base of 60 million people. A member of the OTE Group, COSMOTE started commercial operations in Greece in April 1998, five years after its two competitors Panafon (Vodafone) and STET Hellas (TIM) commenced their operations, and in June 2001 was the only third entrant to achieve first position in its domestic market. Currently it has over four million customers in Greece, where it is the number-one mobile player, and also has mobile operations in Albania, FYROM, Bulgaria and Romania. In 2004 the company achieved exceptional financial performance, among the best in Europe. Revenues exceeded EUR 1.58 billion, while net earnings reached EUR 308.2 million.
Almost 300,000 Greek tourists visit Bulgaria in H1 2005 July 30, 2005 -- A total of 298,645 Greek tourists visited Bulgaria during the first six months of this year, according to data released by the Bulgarian National Statistics Institute. The institute's latest statistics show that 2,703,470 foreigners visited Bulgaria during the same period, a 7.0% year-on-year increase, of which 1,530,510 were tourists. Greeks were the largest group of tourists visiting Bulgaria in the first half of this year. The same data show that Turkey is the most favourite tourist destination for Bulgarians. The country attracted 245,101 Bulgarians in the first half of 2005. Greece is the second most popular holiday destination for Bulgarians. Source: Sofia Morning News / Novinite Ltd.
Global Finance SA sets up Global Emerging Property Fund July 6, 2005 -- Athens-based Global Finance SA, the private equity and venture capital management firm with over EUR 400 million under management, announced today that it had set up its first real estate fund, the Global Emerging Property Fund. The special purpose vehicle, organised under the laws of Jersey and managed by Global Finance, will be a real estate private equity investment fund pursuing long-term gains through investing in development and completed real estate primarily in Romania, Bulgaria, and Serbia and Montenegro, with aggregate capital of EUR 70-100 million and a possible second closing of up to EUR 150 million. Global Finance said that the fund's capital was more than EUR 125 million. EFG Eurobank Properties SA is the official consultant for the new facility. Private investors and organisations are among the shareholders in the fund. They include the European Bank for Reconstruction and Development (EBRD) and Vienna Stock Exchange-listed IMMOEAST Immobilien Anlagen AG, a 51%-owned subsidiary of IMMOFINANZ Immobilien Anlagen AG, the most diversified property company in Europe. Global Finance said that the fund would focus on acquiring and developing commercial properties in Romania, Bulgaria and Serbia, such as modern high-standard office and trade centres as well as industrial properties. These properties would be rented out to multinational and local companies, the firm said. Sources: EBRD, INVbg.
TERNA SA lands EUR 86 million railway infrastructure project in Bulgaria June 14, 2005 -- The European Commission has approved the selection of TERNA SA, the ATHEX-listed construction company, to upgrade and electrify the Krumovo-Parvomay section of Bulgaria's Plovdiv-Slivengrad railway line. The 37.7-km. project is worth EUR 86 million. The upgraded tracks will accommodate cargo train speeds of up to 80 km./hour and up to 120 km./hour for passenger trains. The city of Slivengrad is located close to the Bulgarian-Turkish border. The total cost of the Plovdiv-Slivengrad railway infrastructure project is EUR 340 million. It is the largest Bulgarian project financed by the EU's Instrument for Structural Policies for Pre-Accession (ISPA) programme. The Plovdiv-Svilengrad railway upgrade is jointly financed by the European Investment Bank (EUR 150 million), ISPA (EUR 153 million), and the Bulgarian state (EUR 37 million). The project is of key importance to Bulgaria since it overlaps with sections of pan-European corridors 4 and 9. Negotiations with TERNA, a member of the Athens-based GEK Group of Companies, will commence within the next couple of days, Bulgarian Finance Minister Milen Velchev informed BTA, the Bulgarian News Agency. Source: INVbg.
3rd Forum Invest Economic Conference in Greece:
Grande Bretagne Hotel,
Syntagma (Constitution) Square, Athens, June 6-9, 2005 Introduction by Konstantinos Tsoukalidis, Chairman, Hellenic-Romanian Business Council "The Hellenic-Romanian Business Council fully supports the economic forum organised in Athens by Forum Invest, in the frame of the same co-operation inaugurated with success in the year 2000, supporting the economic relations between Greece and Romania through the third edition of Hellenic-Romanian economic forums organised this year under the title 'South-East Europe: Priority Policies for a Sustainable Regional Economic Development'. "The organisation of the third Hellenic-Romanian conference in Athens on June 6-9 marks a new turning point to the development of the fruitful bilateral economic relations now that Romania is on the final stage of its accession to the European Union, entering the united and challenging environment of the European market. At the same time, Greece continues to play its important role to the developments in South Eastern Europe by participating actively to political initiatives as well as promoting the regional economic development through the Hellenic Plan for the Economic Reconstruction of the Balkans. "An event like this, organised in high standards, is offering the opportunity of contacting decision makers from both countries creates the conditions for new collaborations as well as of enhancing the existing ones encouraging the investments. The Hellenic-Romanian Business Council gives a great importance to the further development of both the Hellenic investments in Romania as well as Romanian investments in Greece, considering the mutual exchange of capitals and know-how between the two countries as an imperative for the development of the entire region of South-East Europe."
Piraeus Bank SA to buy 100% stake in Egyptian Commercial Bank... June 2, 2005 -- Piraeus Bank SA, Greece's third-largest private-sector banking group, yesterday placed a tender offer for a 100% stake in Egyptian Commercial Bank (ECB) of Cairo for EGP 20 (EUR 2.804) per share for a total of 9,626,122. Before launching this public tender, the Greek banking multinational had received the approval of both the Central Bank of Egypt and the Egyptian Capital Market Authority (CMA). Piraeus Bank also announced that, following the successful completion of its Egyptian acquisition, a capital increase will follow, which is expected to be executed by the end of this month. Listed on the Cairo Stock Exchange, the ECB maintains a network of 18 branches. At the end of last year, the Egyptian bank had total assets of EUR 410 million, total loans (after provisions) of EUR 184 million, customer deposits of EUR 374 million, and total equity of EUR 23 million. ...closes first Serbian deal... May 28, 2005 -- Piraeus Bank Group sealed a deal to acquire 80% of Atlas Bank AD, based in Belgrade, for EUR 19.5 million. Atlas Bank has a network of 11 branches in three cities in Serbia, while two new branches are going to be inaugurated soon, bringing the total number of branches to 13. It employs 160 people. The total assets of Atlas Bank are EUR 63 million, total loans EUR 36 million -- representing a mere 1% market share -- and its customer deposits amount to EUR 44 million. The ATHEX-listed banking group could go after another acquisition in Serbia, according to George Mantakas, head of Piraeus Bank's international division, who spoke to Elaine Green of the Athens News during the EBRD annual meeting in Belgrade. "We now want to expand further in Serbia and this could be done organically or through acquisition," Mantakas told the Athens News in an informal interview. Greece's fifth-largest lender, with a 11% market share in December 2004, is determined to garner a 5% market share of the banking market in the Balkans. ...and completes Eurobank AD acquisition Earlier this month, on May 19, Piraeus Bank officially completed its acquisition of a 99.7% stake in Bulgaria's Eurobank AD for EUR 48.4 million. Following this takeover, which was signed on January 24, Piraeus Bank's market share in Bulgaria reached close to 4.5%. Piraeus Bank Group now boasts a network of 61 branches in 28 cities in Bulgaria with total combined Bulgarian banking assets of just over EUR 439 million. At the end of 2002, ING of The Netherlands formed a strategic alliance with Piraeus Bank in the fields of bancassurance and asset management. ING controls 4.2% of Piraeus Bank shares, while the latter holds a direct participation in ING. Both joint-ventures are expected to increase their presence in the growing sectors of asset management and bancassurance. Both partners have also agreed to proceed with a plan that will examine the prospects of expansion of their joint-venture activities in other countries in South-East European, such as Bulgaria and Turkey. [full profile...] [premium content] (INVgr) ING has been present in Bulgaria since 1994, when a branch of ING Bank was established in Sofia. In 1998, the bank opened an office in Varna. ING Group started its pension business in Bulgaria in April 2001, only after the inception of the new pension insurance legislation. In addition, ING Pension Insurance Company EAD has a licence to carry out additional pension insurance. [full profile...] [premium content] (INVbg) Source: INVg, INVbg.
Intracom SA sells 66% of Bulfon AD to BTC, increases stake in Intrasoft International SA
May 27, 2005 -- Intracom SA sold its 66% participation in Sofia-based Bulfon SA to the recently-privatised Bulgarian Telecommunications Company (BTC) for an undisclosed price, according to an official announcement sent to the Athens Exchange (ATHEX) by the Greek telecommunications equipment manufacturer today. The same announcement also mentioned that Intracom has acquired 1,877 shares of Luxembourg-based Intrasoft International SA, a member of the Intracom Group, raising its stake from 69.73% to 100%. Bulfon was established in 1995 as a 34%/66% joint-venture between BTC and Intracom SA to develop, produce and implement modern telecommunications equipment in Bulgaria. Over the past decade, Bulfon has been developing, installing and managing a nationwide network of public card payphones throughout the country, using chip-cards as a means of payment. Bulfon currently has more than 8,000 phones in 350 cities, towns and villages in operation throughout Bulgaria. [more...] (INVbg)
Aktor SA expands in Kuwait, Qatar and Romania May 27, 2005 -- Aktor SA, the ATHEX-listed construction group closely linked to the Bobolas publishing family, is the preferred bidder for a EUR 82.5 million project in Kuwait. The firm also participates in a EUR 100 million project in Qatar, while it it is involved in three projects with a total budget of EUR 50 million in Romania.
Turnaround success of RomTelecom boosts OTE Q1 net profit May 27, 2005 -- Hellenic Telecommunications Organisation SA (OTE) posted an 89% year-on-year rise in net profit for the first three months of 2005, partly due to the turnaround success of its Romanian subsidiary, RomTelecom, according to officials. Net profit rose to EUR 90.7 million, in contrast to EUR 48.1 million in the first quarter of 2004. Revenues were up by 6% to EUR 1.3 billion, outdoing market expectations. RomTelecom saw a three-fold increase in net profit to EUR 46.1 million in the first quarter of 2005, on the back of revenues of EUR 225.7 million. In its domestic market, OTE's fixed-line operating revenues dropped by 1.2% in the first quarter of 2005, but this was a marked improvement on the 10% drop seen in the fourth quarter of 2004, due to competition from private fixed-line operators.
Greece is Bulgaria's second-largest foreign investor, after Austria In excess of 1,500 Greek enterprises invested over EUR 1.8 billion in Bulgaria since 1992 May 22, 2005 -- Greece is a leading investor in the Bulgarian banking sector, controlling 19.3% (in terms of assets), 19.3% (liabilities), 23.5% (loans to NFI, net) and 18.5% (deposits of NFI) of the market in the first half of this year, according to the Bulgarian National Bank (BNB) and calculations by United Bulgarian Bank AD (member of the NBG Group). Greece is the country's second-largest foreign investor, after Austria, with 10.2% of Bulgaria's FDI (foreign direct investment) inflows. Over 1,500 Greek-owned companies have invested in Bulgaria since 1992, accounting for FDI inflows worth EUR 1.8 billion. Greek investors primarily focus on Bulgaria's industry (food, building materials, clothing, etc.) and services (banking, telecommunications, information technology, insurance and tourism) as well as trade. In addition, Greek tourists form the largest share of foreign tourists coming to Bulgaria, with a total of 273,062 Greeks visiting the country between January and May 2005. In February 2005, several leading Greek-run and Greek-owned companies established the Hellenic Business Council in Bulgaria (EESB in Greek or HBCB in English) with the aim of protecting the interests of Greek companies in Greece's neighbouring country and boost bilateral Hellenic-Bulgarian economic relations, according to To Vima journalist Dimitris Harontakis. Members include United Bulgarian Bank AD (UBB), a subsidiary of National Bank of Greece SA (NBG Group), Bulgarian Post Bank AD (EFG Eurobank Ergasias), EKO - ELDA, Chipita and Delta (BrandCo), Panagaea, Greek glass manufacturer YOULA, Intracom, BB&T, Spider N. Petsios & Sons SA, Greek chocolate manufacturer ION SA and S&B Industrial Minerals SA.
Sources: INVgr, To Vima.
Source: Hellenic Business Council in Bulgaria.
Lamda Development SA to complete one of South-East Europe's largest shopping and entertainment centres in October
Mediterranean Cosmos Shopping & Leisure Centre May 20, 2005 -- Lamda Development SA, a member of the Latsis Group, said that it expects to complete its Mediterranean Cosmos development, the first and largest shopping and leisure centre of its kind in Northern Greece, in October of this year. This EUR 110 million project is one of the largest shopping and entertainment complexes in South-East Europe. Athens Exchange (ATHEX) listed Lamda Development expects the centre's turnover to reach approximately EUR 220 million in the first year of operation. Strategically located in Pylea, in South-East Thessaloniki, Mediterranean Cosmos stands on a large 250,000 m2 site, which belongs to the Ecumenical Patriarchate, providing 45,000 m2 GLA and 3,000 parking spaces. Designed to attract people of all ages, Mediterranean Cosmos includes a wide array of small shops and major anchor retailers, restaurants, a multi-unit food court, a supermarket, a multiplex cinema (11 screens) and a bowling and entertainment centre for the entire family. Thessaloniki is the second-largest city in Greece and a rapidly-growing political, cultural and industrial hub for South-East Europe. Capturing the Mediterranean spirit The essence of the Mediterranean Cosmos -- "Earth, Air, Water, Myth, Art, Culture" -- serves as the inspiration for the project offering a powerful and memorable customer experience. One of the centre’s major features is a traditional "Greek village" comprising of a church, museum, artisan shops, traditional taverns, an open civic space and a 500-seat outdoor amphitheatre for the staging of musical events, dance performances and festivals. Unique business opportunity With a budget of approximately EUR 100 million, the Mediterranean Cosmos Shopping & Leisure Centre represents a tremendous business opportunity and is scheduled for completion during 2005. The project is being developed in collaboration with an international leader in similar developments, Sonae Imobiliaria of Portugal, whose local company, Sonae-Charagionis SA, bought a 39.9% stake in the project in June 2002. Out-of-town retail market in southern Europe The out-of-town retail market in southern Europe is becoming more international in flavour as developers push back the boundaries in their desire for expansion and retailers seek to take advantage of cheaper rents and fresh markets by jumping borders, according to Savills' latest European report. Retail parks and factory outlet centres are following in the wake of this drive for greater representation. Developers are also focusing on smaller and less supplied catchments as the more mature shopping centre markets of southern Europe become saturated and planning regulations, in some areas, start to bite. The retail warehouse sector is being driven by consumer expenditure and demand from retailers, which is helping to create a leasing market in this owner-occupier dominated sector. This in turn is supporting the investment market. Greece is playing catch up with its European neighbours and last year increased its total stock of shopping centre space by 26% to 400,000 sq.m., which could double in the next two years, particularly with completion this year of two of the largest schemes in the pipeline: Mediterranean Cosmos in Thessaloniki and Media Village in Athens, totaling 107,000 sq.m. While Athens continues to account for the lion's share of existing space, at 41%, more new schemes are now being developed in the regional cities, but retail parks and factory outlets remain at an embryonic stage. Lamda's expansion in Romania and Bulgaria Lamda Development is reportedly in advanced talks for co-operation related to similar large-scale projects in Bulgaria and Romania. The latter was the first country -- and Bucharest the first city -- in South-East Europe in which the Lamda Development Group decided to expand its activities. In Bucharest, Lamda Olympic Srl -- a 50/50 joint venture between LAMDA Development and ATHEX-listed Technical Olympic SA that was established in 2002 -- has recently successfully developed the Lake View Condominium into a 23,000 m2 residential complex on a 9,000 m2 plot of land that includes 93 luxury residential apartments and 6,500 m2 of underground space. The Lake View Condominium investment, worth EUR 20 million, has been recognised as the most important residential project in Bucharest.
Global Finance SA acquires majority stake in leading Romanian software company May 20, 2005 -- Through its private equity funds, Athens-based Global Finance SA acquired in late April an 88% stake in TotalSoft SA, a leading Romanian software company, by buying out passive shareholders in co-operation with the company's management team. Totalsoft was founded in 1994 by Liviu Dan Dragan, one of Romania's IT experts and a successful entrepreneur. The company has established a leadership position in locally developed Enterprise Resource Planning (ERP) and Human Resources software as well as in project management software. Totalsoft also provides outsourcing services to Western European and American IT service companies, a revenue stream which accounts for more than 20% of the company's revenues. Totalsoft has a strong client list in all sectors, from multinational companies (e.g. Orange, GlaxoSmithKline, Henkel) to leading Romanian companies (e.g. Medicover, BCR Leasing, Continental Hotels). The company has experienced high growth of approximately 35% annually and robust operating profitability of 20% in the past three years. Last year, Totalsoft's revenues exceeded USD 5 million and on EBITDA of USD 1.2 million. Both ERP software and outsourcing services are expected to grow significantly in the next years. As Romanian businesses only recently started spending on IT infrastructure for their operations, the opportunity for future growth is very promising. Totalsoft is also expected to benefit from the anticipated increase in expenditures in IT in Romania, as the country is preparing to join the European Union.
Global Finance SA's Growth Fund invests in Royal Potatoes of Bulgaria May 11, 2005 -- Athens-based Global Finance SA concluded the management buy-out (MBO) of Royal Potatoes, a Bulgarian manufacturer and wholesaler of frozen potatoes. Following the acquisition and a subsequent share capital increase, Global Finance's Growth Fund shall maintain a majority stake in the company. Royal Potatoes currently operates a 10,000-tonne-per-annum processing facility in Samokov, south of Sofia. It offers a full range of frozen products in the Bulgarian market, where it commands a 40% market share. Royal Potatoes plans selective investments in equipment in order to improve efficiency and ensure quality. Most importantly the company plans to strengthen its commercial capabilities in Bulgaria and to initiate exports in neighbouring markets. Royal Potatoes is the Growth Fund's second investment in Bulgaria. The EUR 20 million Growth Fund targets fast-growing companies in Bulgaria and Romania and supports dynamic entrepreneurs and management teams. The EBRD, the European Commission, Bulgarian Post Bank AD, and Doverie Capital are among the fund’s key investors. The European Commission’s participation is through the SME Finance Facility Special Fund, which is administered by the EBRD.
Greece, Bulgaria and Russia sign landmark Burgas - Alexandroupolis trilateral pipeline pact April 13, 2005 -- Bulgaria, Greece and Russia signed a EUR 522 million agreement for the construction of the Burgas - Alexandroupolis oil pipeline that will bypass Turkey's busy Bosporus strait, putting an end to 10 years of negotiations. Greek Minister of Development Dimitris Sioufas, Bulgaria's Regional Development Minister Valentin Tserovski and Russia's Minister of Industry and Energy Viktor Borisovic Khristenko put their signatures under the landmark trilateral memorandum on Tuesday in Sofia. The ceremony was also attended by Bulgaria's Prime Minister Simeon Saxe-Coburg, Greece's ambassador to Sofia, Prokopios Mandzouranis, Russia's envoy to Bulgaria, Anatoli Potapov, and other distinguished guests. Under the long-delayed deal, a 285-kilometre pipeline will link Bulgaria's port of Burgas to the Greek northern city of Alexandroupolis by the end of 2007. Initial talks on building the pipeline began in 1993 but were delayed because of disagreements over its cost, ownership and feasibility. The pipeline will have a capacity of 700,000 barrels a day. The planned annual capacity will be 15 million metric tonnes once the first stage of construction is finished, 24 million tonnes after completion of the second stage and 35 million on final completion. It will be able to handle exports from oil-rich Azerbaijan via a Russian pipeline linking the Caspian and Black Seas. It would also allow oil from Kazakhstan to be shipped to Burgas. There were agreements of the three governments between 1999 and 2002 to establish equal one-third shares for each country's designated participants, but that clause was not included in the memorandum signed on Tuesday. British Petroleum PLC's Russian joint-venture, TNK-BP, is heading the project and other partners are to include ATHEX-listed Hellenic Petroleum SA of Greece and Technoexportstroy of Bulgaria. Source: Novinite Ltd.
EFG Eurobank Ergasias SA to derive 20% of group earnings from South-East Europe, excluding Greece, by 2009 February 21, 2005 -- EFG Eurobank Ergasias SA plans to strengthen its position in Serbia through acquisitions. At the same, the Greek banking group will be developing and expanding its own retail network in Serbia. EFG Eurobank Ergasias envisions that by 2009, the bank will derive 20% of its total group profits from South-East Europe, excluding Greece.
Alpha Bank SA expands in Serbia by acquiring 88.64% of Jubanka January 26, 2005 -- Alpha Bank SA signed an agreement today to purchase an 88.64% stake in Jubanka a.d. Beograd, as part of its strategy to expand its banking operations in South-East Europe. Alpha Bank is paying a total consideration of EUR 152 million to acquire all of the 936,182 shares currently held by the Republic of Serbia and Jugobanka, who respectively hold 82.69% and 5.95% of Jubanka's ordinary shares in issue. Alpha Bank will launch by June 2005 a tender offer for the remaining 11.36% of Jubanka ordinary shares in issue, currently held by 1,685 minority shareholders, with terms equivalent to those in the agreement with the two principal sellers. The transaction is subject to regulatory approvals. The acquisition of the Serbian bank will build on Alpha Bank's presence in Serbia, strengthening our operations with 90 branches, 286,000 retail and 30,000 business customers. Serbia is a key market for Alpha Bank in terms of growth prospects in the retail, corporate and public sectors. Alpha Bank intends to optimise prospects in these segments by developing local marketing and introducing a portfolio of new financial products and services. In this growth context, Alpha Bank, for the first three years of operation, will maintain the Jubanka workforce at the level recorded at the end of June 2004. Commenting on the acquisition, Yannis S. Costopoulos, Chairman and Managing Director`, Alpha Bank, said: "The acquisition of Jubanka is a significant step forward in implementing Alpha Bank's growth strategy in South-East Europe. The synergies arising from the combination of our capabilities as a well-established regional player with Jubanka's strong local franchise will help Alpha Bank to become the financial services provider of choice for households and businesses in Serbia." About Alpha Bank Alpha Bank, founded in 1879, is the second largest Bank in Greece with about 16% market share. With 445 branches, Alpha Bank is also active in South-East Europe (Albania, Bulgaria, Romania, FYROM, Serbia and Montenegro) and Cyprus. Alpha Bank offers a comprehensive range of financial services to private and corporate customers. With approximately Euro 32 billion in assets, more than Euro 2 billion in equity, Alpha Bank generated EUR 284 million in profits after tax and minorities in 2003 and more than EUR 300 million in profits after tax and minorities in the 9month period of 2004. Alpha Bank is listed on the Athens Exchange with a market capitalisation of about Euro 6.2 billion and is a constituent of the Eurotop 300 Index. Alpha Bank was the Official Bank of the Athens 2004 Olympic Games. About Jubanka Established in 1991, Jubanka is the seventh-largest bank in Serbia with approximately 1,300 employees and a market share of about 4%. In June 2004, Jubanka reported EUR 219 million in total assets and EUR 115 million in shareholders' equity. Jubanka offers an extensive range of banking products and services including current/term deposit accounts (in local & foreign currency), short/long term loan facilities (in local & foreign currency), as well as retail/corporate cards, and brokerage services. Jubanka is also one of the leading providers of Visa card in Serbia. Products and services are delivered through a geographically diverse network of 90 branches, numerous ATMs, electronic and phone banking facilities to about 286,000 retail and 30,000 corporate customers. Alpha Bank will publish its fiscal-year 2004 financial results on February 23.
Piraeus Bank SA acquires 99.7% of Bulgarian Bank Eurobank AD in Bulgaria January 24, 2005 -- Piraeus Bank SA signed an agreement today to acquire a 99.7% stake in Bulgarian Bank Eurobank AD, Bulgaria's 16th-largest bank. No acquisition price was released, but market insiders estimate the price tag to be between EUR 45-50 million. The Bulgarian bank is to be sold to ATHEX-listed Piraeus Bank by Sofia-based Petrol AD, the country's largest publicly-listed company in terms of market capitalisation (BSE-Sofia ticker: PET). Following this takeover, Piraeus Bank will own a nationwide Bulgarian network of 61 branches in 28 cities. Bulgarian Bank Eurobank currently has 48 branches in 28 cities, while Piraeus Bank has 13 branches in 10 Bulgarian cities. Eurobank's total assets are EUR 220 million, while Piraeus Bank's assets in Bulgaria, prior to Eurobank's acquisition, total EUR 219 million. The Greek bank has a market share of 2.5% (loans), while Eurobank's market share is 1.7% (loans). The total customer deposits in Bulgaria of the combined Group, including Eurobank, are EUR 225 million on total loans of EUR 310 million, resulting to a market share in Bulgaria of over 4.2%. The transaction is subject to regulatory approvals.
Hyatt Regency Hotels & Tourism (Hellas) SA participates in Tirana casino licence auction with group of Albanian investors
January 17, 2005 -- Greek hotel, resort and casino group Hyatt Regency Hotels & Tourism (Hellas) SA announced its participation in the international auction for a casino licence in Tirana, the Albanian capital, through its 60%-owned subsidiary, Gaming Investments Overseas SA, The privately-owned Laskaridis shipping and hospitality group participates with a minority stake in this newly-formed company. If it wins the international auction, Gaming Investments Overseas is believed to control a 51% stake in the casino venture/licence, while a local Albanian company, which owns a newly-built property on Tirana's central square, will hold the remaining 49%. In addition, Hyatt will to take on the management of the casino through its wholly-owned subsidiary, United Reserve SA. The company is expected to receive a management fee of 3% of sales plus 10% of EBITDA for running the casino. The Albanian Ministry of Finance, which announced calls for expression of interest in the auction in the Financial Times of January 14, hopes to sell the 15-year exclusive licence for USD 10 million. Hyatt Regency is expected to have a 30.5% shareholding interest in the Tirana casino and a 100% management contract. Ian Gosling will reportedly be in charge of the Albanian casino, while the casino licence is expected to be issued in April of this year. Listed on the Athens Exchange (ATHEX: HYATT), Athens-based Hyatt Regency Hotels & Tourism (Hellas) SA has set its sights on expanding its present operations and entering new markets, such as Albania. Related story on INVgr:
Taking stock: Business File Special Survey on Greek outward investment
When Greek companies first started to enter the Balkans at the beginning of the last decade, it was assumed that the upheaval associated with the disintegration of the Soviet empire and the fragmentation of the Yugoslav Federation was, if not over, then well on the way to winding down. Only the most far-sighted -- and few there were -- could foresee the violence that was still to follow in Albania, the Former Yugoslav Republic of Macedonia (FYROM) and Serbia or the political turbulence that would at times come close to paralysing government in Bulgaria and Romania. Greek entrepreneurs investing in the region realised that they were entering an area of high economic instability. But this was something with which they were familiar from the recent history of the domestic economy in which they had faced high inflation, soaring interest rates, currency devaluation and on-again, off-again privatisation programmes. They thought that they could cope. And they did. But only with great difficulty, which involved a steep learning curve. Perhaps the most significant thing to say is that none of the large companies that have gone to the region have failed, although the state-controlled Hellenic Telecommunications Organisation (OTE) is facing severe difficulties with the profitability of several of its foreign ventures and may, in fairly short order, under incoming New Democracy administration, divest or liquidate some of its assets. In the private sector, the ice-cream maker, Delta, is reconsidering its position, although its management is oracular about precisely how it sees the way forward. The publication Business File, has tracked the course of Greek outward investment in three Special Surveys in 1995, 1998, and 2000. In its latest, "Taking stock," published in October 2004, it analyses the foreign investments of eight of the largest Greek companies that have invested in the Balkans and beyond plus those of three large banks that have followed them. Using financial documents and interviews with senior executives it attempts to evaluate the benefits and pitfalls of investing in developing economies. It also considers the role of venture capital in the foreign investment process. Basically the report concludes that if firms have iron nerves, deep pockets and strong legal back-up, they can be profitable -- but probably only over the longer term. It illustrates that, as the economies of southeastern Europe converge with those of the EU, the business focus, is shifting from dodging bombs and bullets to more traditional concerns such as:
The regional political environment is for the moment relatively stable. A new wave of Greek investors has already begun, or is gearing up, to follow the pathfinders. But, the report concludes, they need to be mindful of the lessons learned by their predecessors.
Timing is all.
In short, the basic elements for success abroad are the same as those of investing at home: vision and timing. [more...]
Bulgaria attracts record FDI in 2004 December 23, 2004 -- Foreign Direct Investment (FDI) in Bulgaria is forecasted to reach a record EUR 2 billion by the end of the year, according to a BulgariaInvest Agency report released on Wednesday. Bulgaria managed to attract approximately 30% of total FDI inflows in South-East Europe, with Austria (EUR 492.5 million), The Netherlands (EUR 166.8 million) and Greece (EUR 103.5 million) being the top-three foreign investors in the country, respectively. Investments over the last three years reached USD 4,463 million, almost USD 1.5 billion more than the total foreign investments in Bulgaria between 1997-2001. Source: Sofia News Agency.
Delta Project SA establishes Romanian subsidiary December 21, 2004 -- Delta Project SA established a subsidiary in Romania, DELTA PROJECT CONSTRUCT S.R.L. The newly-formed Romanian company, which is 95% owned by Moschato-based Delta Project, plans to offer the exact same services in the local market as its parent company does in Greece and will focus on the same sectors. Listed on the Athens Exchange's New Stock Market (NEXA), Delta Project is mainly involved in the study, design and implementation of so-called Turn Key Projects on behalf of production companies active in the following manufacturing sectors:
Delta Project takes on the responsibly and support of each assigned project. The Greek firm has been involved in power projects since 1992. Seven years later, Delta Project started constructing a Small Hydro Power Station (950KW) and since then, the company has continuously been expanding its activities in the renewable energy (RES) production sector. Sources: INVgr, ATHEX, Delta Project.
SEVE launches on-line database of Greek overseas banking operations November 25, 2004 -- Thessaloniki-based SEVE (Exporters' Association of Northern Greece) recently launched a free-of-charge service for its members and the general public. The new Greek-language service is a unique on-line database of Greek banks with brief details of all their branches outside of Greece, including the name of the bank, country, address, phone/fax numbers and the name(s) of each branch manager. According to SEVE, Greek banks currently operate a total of 650 branches outside their domestic market. Apart from Cyprus, the five countries where Greek banks have the largest concentration of branches are: Romania (36 branches), Albania (31), USA (31), Bulgaria (25) and the United Kingdom (23). The cities where branches of Greek banks are most concentrated are: London (19), Bucharest (15), Tirana (10) and Sofia (8). The top-three Greek banking groups that have the largest amount of branches outside of Greece are state-controlled National Bank of Greece SA (NBG) (110 branches) as well as privately-run Piraeus Bank SA (102) and Alpha Bank SA (64), according to SEVE's most recent data. Furthermore, the only Greek bank that has a representative office in Turkey is NBG, located in Istanbul. Other countries where branches of Greek banks are established include: Luxembourg (EFG Private Bank (Luxembourg) SA), Canada (National Bank of Greece (Canada)), The Netherlands (National Bank of Greece SA), USA (Marathon National Bank of N.Y. (a member of the Piraeus Bank Group), Atlantic Bank of New York (a NBG subsidiary), South Africa (The South African Bank of Athens Ltd. (a NBG subsidiary), Hellenic Bank), Bulgaria (Emporiki Bank - Bulgaria EAD, United Bulgarian Bank AD (UBB has 145 branches throughout the country), Bulgarian Post Bank AD, Piraeus Bank SA, National Bank of Greece, Interlease AD (a NBG subsidiary), Alpha Bank), Australia (National Bank of Greece SA), Russia (Hellenic Bank), Sweden (National Bank of Greece SA), Cyprus (Alpha Bank Limited, National Bank of Greece (Cyprus) Ltd., Bank of Cyprus Ltd., Emporiki Bank - Cyprus Ltd.), Egypt (National Bank of Greece), Romania (Egnatia Bank Romania, Alpha Bank Romania, Piraeus Bank Romania SA, Emporiki Bank - Romania SA, National Bank of Greece, Garanta SA, Banca Romeneasca, ETEBA Romania SA, Banc Post SA, Alpha Leasing Romania), Serbia and Montenegro (National Bank of Greece SA, Alpha Bank, EFG Eurobank a.d., Beograd), Albania (Alpha Bank, Tirana Bank SA, National Bank of Greece, Emporiki Bank - Albania SA), FYROM, France, Channel Islands (EFG Eurobank Ergasias International (CI) Ltd. - Guernsey, Alpha Bank Jersey), United Kingdom (Emporiki Bank of Greece SA, Piraeus Bank London Branch, Hellenic Bank Ltd., Alpha Bank London Ltd., National Bank of Greece SA), EFG Eurobank Ergasias), Armenia (Emporiki Bank - Armenia CJSC), Germany (Emporiki Bank - Germany GmbH, Agrabank von Griechenland, National Bank von Griechenland AG Athen, Piraeus Bank Frankfurt Branch), and Georgia (Emporiki Bank - Georgia SA).
OTE to swap Balkan subsidiaries for COSMOTE stake
OTE and COSMOTE sign MoU in Athens, effectively transferring OTE's ownership of GloBul (Bulgaria) and Cosmofon (FYROM) to COSMOTE November 3, 2004 -- State-controlled Hellenic Telecommunications Organisation SA (OTE) and its mobile subsidiary COSMOTE Mobile Telecommunications SA announced that the boards of both publicly-listed companies approved today the signing of a memorandum of understanding for the commencement of the procedures for a share capital increase of COSMOTE through a contribution in kind by OTE of the shares of the Bulgarian mobile telecommunications company CosmoBulgaria Mobile EAD -- a newly-created, wholly-owned subsidiary that trades under the name GloBul -- and of MTS Holding BV, a special-purpose vehicle registered in The Netherlands which owns 100% of the shares of FYROM mobile telecommunications company Cosmofon Mobile Telecommunications Services AD Skopje. The move is part of ongoing efforts to increase OTE's 59% stake in its successful mobile arm, ahead of full absorption. [more...] [INVbg] Source: INVbg.
AmCham's Greek Economy Conference to be held for 15th consecutive year
Dates: November 1 & 2, 2004
October 31, 2004 -- The annual Hour of the Greek Economy Conference will be held this year November
1-2, about one month earlier than has been customary.
Organised by the American-Hellenic Chamber of Commerce, one of the largest and most active American chambers in Europe,
the annual event provides a unique platform for the private and public sectors to exchange views to exchange views and for economic policy to be discussed in an open
forum. The Greek Economy Conference will be organised for the 15th consecutive year, under the auspices of the Greek government. Over the last years, the
Greek Economy Conference has been established as the leading and most successful forum in the economic sector.
EBRD and IFC convert debt into 7.28% stakes at Banc Post October 27, 2004 -- The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) today each acquired a 7.28% stake in Romania's Banc Post by converting debt into shares. The transaction, combined with a USD 10 million capital increase also approved at Banc Post's annual general meeting of shareholders today, is intended to strengthen Banc Post's position as a leading Romanian financial services provider. Following the capital increase, which will be covered by the shareholders, Banc Post's capital will increase by USD 26 million. Athens-based EFG Eurobank Ergasias SA is the largest shareholder of Banc Post, and will maintain its participation of over 50% in the share capital. EFG Eurobank Ergasias has also signed a put and call arrangement with the EBRD and IFC with respect to their share in Banc Post. EFG Eurobank also holds an option to acquire shares currently owned by GE Capital that amount to 7.48%. Banc Post is the fifth-largest bank in Romania and the largest with Greek ownership. It employs approximately 3,500 people. In 2004 the bank has shown impressive growth, with both lending and deposit-taking increasing faster than that of the Romanian banking market. The Bank runs a network of 164 branches throughout Romania, covering all areas of banking with emphasis on retail and large and medium enterprises following operational systems and customer service standards similar to those of Greece. It is worth noting that in 2004 Banc Post was awarded by The Banker, member of the Financial Times publishing group, as 'Best Bank in Romania.' The EBRD and IFC originally each extended USD 10 million subordinated, convertible loans to Banc Post in 1998 as part of an effort to increase the bank's capital and prepare it for privatisation, which eventually occurred in 2002. Under today's transaction, each is convertin | ||||||||||||||||||||||||||||||||||||||||||
