The privatisation agency ranked Balkan Hemus Group, representing the country's second largest air carrier Hemus Air, as preferred buyer of the national flag carrier Bulgaria Air on October 20. As earlier reported, Hemus Air has overbid the other candidate Air One Bulgaria, owned by Italy 's Air One, in all criteria for price, investment and employment commitments. The final decision for selling out the air carrier will have to be confirmed by the government and the supervisory board of the privatisation agency. Hemus Air offers EUR 6.5mn for full control of Bulgaria Air, investment plan of EUR 82mn over a 5-year period, and a twofold employment growth to 1,062 workers at the end of the same period. This is compared to a price offer of EUR 5.32mn by Air One and much weaker investment commitments of EUR 8.1mn and a 25% employment growth to 629 workers in 5 years. The state is selling the full stake in Bulgaria Air but will retain a "golden share" with the right to block key decisions. Bulgaria Air reports net sales of around EUR 100mn, 750,000 passengers, and pre-tax earnings of EUR 0.26mn for last year. It has licences for servicing 30 international lines. The financial flows of the air carrier have rapidly deteriorated this year and unofficial information presented in the press points to big losses in the tune of EUR 3-4mn in Jan-Sep.

Hemus Air is part of the country's largest holding company Chimimport, which has successfully operated an initial public offering in September. The shares of Chimimport will be floated for secondary trade on the local stock exchange at the end of October. The market capitalisation of the holding is expected to exceed EUR 300mn that will turn it into the country's third largest entity traded on the local stock exchange.