VTB Capital Acquired Bulgartabac Holding

Oct. 4, 2011, 4:48 p.m.

VTB Capital completed the acquisition of 79.83% of the shares of Bulgartabac Holding through BT Invest, a subsidiary of VTB Capital and fully owned subsidiary of ОАО VTB Bank.

The General Meeting of the shareholders of Bulgartabac Holding, which was held today, elected a new Board of Directors and discharged the former one.

Alexander Romanov, Yavor Draganov, Angel Dimitrov, Ventsislav Cholakov and Miglena Hristova are the newly elected members of the company’s Board of Directors, with a three-year management mandate. Mr. Alexander Romanov, head of the Investment Management Group of VTB Capital was elected Chairperson of the Board of Directors. Mr. Ventsislav Cholakov and Mr. Angel Dimitrov were elected CEOs of Bulgartabac.

After the General Meeting was closed, the first meeting of the new Board of Directors was conducted. The next meeting will be on 4 November 2011.

As already announced, the price of the company acquisition is EUR 100,1 million and the obligation for purchasing tobacco from local tobacco producers amounts to 5,000 tons per year for the following 5 years. During the next two years Bulgartabac will allocate for capital expenditures at least BGN 7,000,000 (EUR 3,500,000).

Atanas Bostandzhiev, CEO UK & International of VTB Capital said: "We intend to perform a thorough review of the management processes of Bulgartabac, which will enable us to finalize and announce our goals and strategy for the development of Bulgartabac.


VTB Capital, Investment Economic Activity of VTB Group, is one of the three strategic directions of VTB group, comprising corporate business and retail trade. Since its establishment in 2008 VTB Capital has participated in more than 184 transactions on the debt and equity capital markets, which allowed for the attraction of Russian investments in the amount of over 88 billion dollars.

VTB Capital offers a wide range of investment bank products and services to Russian and international clients, with a focus on operations related to debt, shares, the world commodity markets, investment and asset management, as well as consultancy to clients in relation to merger or acquisition transactions and ЕCM transactions in Russia and abroad. VTB Capital operates in Moscow, London, Singapore, Dubai and Hong Kong and is headquartered in Moscow.

VTB Capital occupies a leading position in the capital markets in Russia and the Commonwealth of Independent States according to the official information for the first 9 months of 2011 by Dialogic, Bloomberg and Thomson Reuters. In 2011 VTB Capital analytical team was announced as the number one in the Thomson Reuters Extel Survey and Institutional Investor All-Russia Investor Survey.