FIDE President makes a big move

Kirsan Ilyumzhinov buys into Bulgarian company petrol: comments in Russian press
20 June 2012 | 09:38 | FOCUS News Agency
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The World Chess Federation President and former president of the Republic of Kalmykia, Kirsan Ilyumzhinov, has bought 52.5% of the big fuel supplier in Bulgaria Petrol Holding. He plans to keep on buying assets abroad and set up an investment fund in Russia, writes Vedomosti.

He says he met Bulgarian businessmen though the World Chess Federation when Bulgaria hosted the world championship in 2010. Petrol is a multi-profile holding and owns 361 petrol stations, 80 petrol warehouses, three port terminals, land in downtown Sofia, cities of Varna and Burgas and other big Bulgarian cities, an airline company with five planes, hotels, including the famous five-star hotel Pomorie on the Black Sea coast, even a football club and a stadium. Ilyumzhinov does not reveal the sum of the deal, but says this is his first investment in Bulgaria.

There will be more – in real property, hotels, transport and telecommunications. The World Chess Federation President said he recently bought also a 50% share in the Vip telecommunication company which operates in Poland and Ukraine.

According to experts the deal probably costs only USD 100 million due to the company’s high debts. Petrol Holding holds about one fifth of the Bulgarian retail market, RBC Daily says.

Credit Mediterranee, which is registered in Switzerland and owned by Kirsan Ilyumzhinov, bought the 52.5% share from two Russian businessmen Denis Ershov and Alexander Melnikov, who owned 47.5% and 5% respectively. The two shareholders were in a conflict with the third owner – Bulgarian businessman Mitko Sabev who owns the rest 47.5% – for a long time.

According to analysts the price of the oil assets is about USD 1 billion, but the company has large debts and the buyer has to invest much money in the modernization of the petrol stations. Despite that Kirsan Ilyumzhinov plans to increase his share in Petrol to 100%, writes Kommersant.

Ilyumzhinov describes the purchase as a profitable deal, because Petrol is a monopoly on the Bulgarian market of oil products.

Source: http://www.focus-fen.net