Bulgarian telecommunications group BTC said its creditors agreed on the sale of a 93.99% stake in the company to two financial investors.
The investors will provide the senior secured creditors 130 million euro ($159.7 million) in exchange for a majority stake in the telco, BTC said in a statement filed with the Sofia bourse without giving names.
According to local business newspaper Capital Daily, BTC's creditors have picked a tie-in comprising Bulgaria's Corporate Commercial Bank and Russia's VTB Capital as buyer of the majority stake.
Following the deal, the telecommunications group debt would be reduced to 588 million euro.
The creditors will have the option to sell their entire stakes to the two investors for a total of 617 million euro, BTC's statement added. The acquisitions price is expected to be between 0.81 and 1.92 levs ($0.51-1.21/0.41-0.98 euro) per share, depending on the sale option the creditors choose.
The deal is expected to be wrapped up in September. After the deal is finalised, in compliance with Bulgaria's legislation, the new majority owner will launch a buyout bid for the rest of the shares.
Currently, BTC's majority owner is telecommunications services provider NEF Telecom Bulgaria.