BULGARIAN WATER BOTTLER GORNA BANYA SOLD TO ARMENIANS FOR 25M EURO

Sofia Echo
Oct 29 2009
Bulgaria

Bulgarian water bottling company Gorna Banya has been sold for almost
25 million euro to Armenian nationals Gagik and Djavair Tsarukyan,
according to the trade registry.

Evgeni Goranov, one of the company’s former owners, confirmed to
Dnevnik that the deal was struck at the end of last week.

The other partners that have divested of their stakes in the water
bottler are Pavlin Ivanov and Roumen Tsvetkov.

About 20 million euro of the amount will be channeled to debt payments,
Goranov said, noting that the company owes 12 million euro in long-term
banking loans and a further four million euro in short-term funding.

It should pay a separate sum of about 3.5 million euro to a UK
investment fund.

A further million euro has been deposited with a guarantee fund to
cover possible future payments. The monies will be left there until
March 30, according to Goranov.

Gorna Banya generated total revenue of more than 36 million leva for
2008. Short-term liabilities for the period stood at 14.9 million
leva and the long-term at 9.6 million leva.

Gagik Tsarukyan is the owner of Armenia-based company Multi Group
Concern. Local media describe him as an influential politician and
businessman. A former wrestler, boxer and arm wrestler, he has a
holding company that comprises construction, telecommunications,
transportation, and food businesses, among others.

Gorna Banya is the entrepreneur’s first Bulgarian investment. It will
be managed by Zaven Asadurov, according to the trade registry.

Asadurov was not immediately available for comment.

Gorna Banya Bottling Company holds 25-year concessions for three
mineral springs in the eponymous Sofia neighbourhood, whose term will
be extended to 35 years with the contract updates being implemented
by the environmental ministry.

Gorna Banya’s sale is the first deal to be completed in the Bulgarian
water bottling sector the year. One of the company’s nearest rivals,
Devin, is in the final stage of selling 75% of its capital after in
end-September current majority owner Austria’s real estate developer
Soravia Group put pen to paper with the exclusive candidate, US buyout
firm Advent International.