Bulgarian Stock Exchange to acquire Independent Bulgarian Energy Exchange

Independent Bulgarian Energy Exchange

Independent Bulgarian Energy Exchange

The Bulgarian Stock Exchange (BSE) to acquire the Independent Bulgarian Energy Exchange (IBEX), according to an announcement by the Company. Bulgarian Energy Holding that currently controls 100% of Bulgarian Energy Exchange has to sell the exchange due to EU energy liberalization regulations by July 31st, 2017, according to latest agreements with the European Commission.

Bulgarian Energy Exchange transferred to Ministry of Finance

The Bulgarian Stock Exchange has been invited to acquire the energy trading platform after appropriate due diligence. No immediate details on the price of the potential transaction.

BSE Executive Director expects not to raise capital for financing the deal

Vasil Golemanski, Executuve Director of the Bulgarian Stock Exchange, said before Bloomberg TV Bulgaria he expected enough reserve capital available to cover the deal and no need for raising new capital. However, he noted that due diligence results have to be seen first. Bulgarian Stock Exchange would not need any new license for this new operation because it will acquire a company holding the license to operate as an energy exchange. “Long-standing experience of the Bulgarian Stock Exchange will be used to organize a regulated market as the stock market that it has been running” – stated Golemanski.

Media reactions

“It will be very intriguing opportunity for both exchanges if they make an IPO for Bulgarian Energy Exchange through BSE to raise additional capital at a later stage”, commented Konstantin Delisivkov, former deputy energy minister, for Bloomberg TV Bulgaria.

About the Bulgarian Energy Exchange

The energy exchange, which was developed in partnership with Norwegian-based Nord Pool Spot and launched at the beginning of 2016, is currently operating in a day-ahead mode. In March 2016, Independent Bulgarian Energy Exchange launched a centralised market for bilateral contracts, making possible the sale and purchase of electricity on a long-term basis.

IBEX will launch intraday trade by the end of 2017, energy minister Temenuzhka Petkova said in May, quoted by seenews.com.

As of December 2016 IBEX has BGN 17m in assets, BGN 175m in total revenues with BGN 2.1m in revenues from trading fees and BGN 745k in net profit.

About Bulgarian Energy Holding (BEH)

BEH pools all state-owned energy assets. The company owns the main electricity generation facilities in the country as well as the electricity transmission grid and the gas transmission and transit networks.