Bulgaria’s Petrol Holding to invest €100m, may change ownership Petrol Holding, the majority owner of fuel retailer Petrol [5PET], has drawn up a
reorganisation plan envisaging an investment of over €100m and ownership changes, majority shareholder Kirsan Ilyumzhinov said at a press conference.
Petrol Holding is in financial trouble, the company is not operating at its full capacity and cannot attract investors, but it has a potential to be stabilised and make a profit, added Ilyumzhinov, who bought 52.5% of the holding last year. According to him the company has drawn a big loan under very unfavorable conditions under its previous management, but it has recently initiated negotiations on repaying its debt.
Ilyumzhinov believes the holding should have a single owner so he has proposed to buy out the 47.5% stake of the other shareholder, Mitko Sabev, as soon as the audit estimates the company's assets to determine its price. If Sabev refuses to divest his stake, Ilyumzhinov will offer him to take his holding, the Russian businessmen said.
Last year, Kirsan Ilyumzhinov, the owner of the Swiss-based company Credit Mediterranee and FIDE President, acquired a 52.5% stake in Petrol Holding, buying all the shares held by Denis Jersov and 5.0% from his compatriot Alexander Melnik. The deals would be finalized on 16 December at a general shareholders meeting where the company would make official the new ownership and the board of directors.