Bulgaria“s soda ash producer Solvay Sodi hit an all-time low of 5.42 levs (US$ 2.62) on the local stock market recently, weighed down by an offering of the state“s remaining 12.36% stake in the comp…
Bulgaria“s soda ash producer Solvay Sodi hit an all-time low of 5.42 levs (US$ 2.62) on the local stock market recently, weighed down by an offering of the state“s remaining 12.36% stake in the company. The share“s previous all-time low was 5.81 levs on May 8. The shareholders“ meeting also stated that the company“s losses last year amounted to 22.5 million levs. The negative result was put down to the unfavourable situation on the international and internal markets. Overall, 90 shares in Sodi traded recently at an average price of 5.51 levs, down 6.45% from previous trading on June 22. On 20 June, Bulgaria“s Privatisation Agency offered 784,762 shares in Solvay Sodi for sale, representing 12.36% of the company“s capital, at a minimum price of six levs. None of the agency“s shares have been traded at that price, and the market seems to be banking on the stock being re-offered at a lower price after the current offer period ends on 8 July. “Some traders were testing new lows for Sodi, hoping to push down the price for the shares from the stake and then buy at the dips,” one broker said. Three years ago Bulgaria sold 60% in Sodi Devnya to Belgium“s chemical and drug group Solvay SA for US$ 160 million. Late in 1997, Solvay raised its stake to 67% and later re-distributed it within a joint venture it had set up with Turkey“s Sisecam and the European Bank for Reconstruction and Development to comply with EU“s anti-monopoly laws. The rest of Solvay-Sodi“s equity is owned by Bulgarian and foreign investors.