1. The Commission entered into the FSC’s Public Companies Registry a stock issue issued by ERG Capital – 1 SPV. The size of the issue is 1,000,000 pieces of ordinary voting shares, having a nominal value of BGN 1 each. The initial public offering (IPO) of this issue shares has been successfully completed and trading of the issue on the stock exchange is forthcoming.

2. The Commission approved a tender offer submitted by S&B Holding GmbH, Oberhausen, Germany, for the purchase of shares of Bentonit AD, Kardjali, from the company’s other shareholders through the Investment Intermediary Economic and Investment Bank PLC. The price offered is BGN 23.98 per share.

3. The Commission approved a tender offer submitted by LUKOIL EUROPE HOLDINGS B.V., Holland, for the purchase of shares of LUKOIL NEFTOCHIM BURGAS AD, Burgas, from the company’s other shareholders through the Investment Intermediary Raiffeisenbank (Bulgaria) EAD. The price offered is BGN 27.83 per share.

4. The Financial Supervision Commission (FSC) approved the persons who are to be admitted to examinations in order to acquire the right to undertake activities as a broker or an investment advisor, which examinations are to be held on May 28 and 29, 2005 respectively. The list of the said persons is to be published on the FSC’s website.

5. The Financial Supervision Commission (FSC) adopted at first reading a Draft Ordinance on amendment to Ordinance No. 1 on the requirements related to the activities of investment companies.
Generally, the aim of the amendments proposed is to secure a higher degree of investor protection. Part of the proposals pertains to the information which investment companies submit to their clients, including the information in advertisements and public utterances. It has to be truthful, accurate and not misleading; it may not emphasize the potential benefits of investing in securities, without also stating the risk related to the said investing. Different part of the proposals pertains to enhancing the internal control within investment companies.

The Draft Ordinance on amendment to Ordinance No. 1 on the requirements related to the activities of investment companies shall be coordinated with all persons concerned and published on the FSC’s website.

 On April 13, 2005, the National Assembly elected Ms. Ralitsa Againe Deputy Chairperson of the Financial Supervision Commission in charge of the Insurance Supervision Division.
Ms. Ralitsa Againe was MP with the 39th National Assembly. In her capacity of MP, Ms. Againe was member of the Economic Policy Committee and Chair of the Subcommittee on Investments and Capital markets under the Parliamentary Economic Committee.
Ms. Againe is also member of the Standing Delegation to the NATO Parliamentary Assembly. Deputy Chairperson of the Bulgaria-US Inter-parliamentary Friendship Group. Founder and member of the Supervisory Board of the Investors Association.

Ms. Dimana Rankova, Deputy Chairperson of the FSC, Head of the Investment Supervision Division, has refused to delete ZSK LOZOVO PLC, Burgas, as a public company from the Public Companies and Other Issuers of Securities Register kept by the FSC.
The complete text of Resolution No. 224 may be found under the Documentation Section.

Ms. Dimana Rankova, Deputy Chairperson of the FSC, Head of the Investment Supervision Division, has overruled Resolution No. 86-ПД dated June 19, 2002 of the State Securities Commission (the SSC), under which deletion of Antikoroza AD, Knezha, as a public company from the Register kept by the SSC, was denied.
Ms. Rankova deleted Antikoroza AD, Knezha, from the Register kept by the FSC by virtue of Art. 30, Para. 1, Item 3 of the Financial Supervision Commission Act.
The complete text of Resolution No. 233 may be found under the Documentation Section.

The Commission imposed a final order of prohibition on a tender offer submitted by Terra Tour Service EOOD, for the purchase of shares of Eztour JSC, from the company’s other shareholders through the Investment Intermediary Karoll AD Financial House.

1. The Commission entered into the Public Companies Registry a subsequent issue of securities issued by Economic and Investment Bank PLC (EIBANK PLC). The issue is to the amount of 2,100,010 ordinary shares, having a nominal and issue value of BGN 10 each. It is issued as a result of the bank’s capital increase.

2. The Commission imposed a temporary prohibition on a tender offer submitted by I. S. Mihailov EOOD, Bourgas, for the purchase of shares of Monolit – Stil AD, Bourgas, from the company’s other shareholders through the Investment Intermediary BenchMark Finance AD, Sofia City.

On this 28th day of March, 2005, in Sofia City, a Memorandum of Understanding on Mutual Assistance and Exchange of Information was signed by and between the Financial Supervision Commission and the Hellenic Capital Market Commission. The Memorandum was signed by the Chairmen of both Institutions – Mr. Apostol Apostolov and Mr. Alexios Pilavios.

This is a further step forward towards extension of the co-operation between the two supervisory institutions, which is to contribute to the establishment and improvement of efficient mechanisms for exchange of information and relative experience in connection with the development of the capital market in both countries.

1. The Commission approved a tender offer submitted by Zavod za Metalorezheshti Mashini – Bulgaria Holding AD, Sofia City, for the purchase of shares of Mashstroy AD, Troyan, from the company’s other shareholders through the Investment Intermediary Aval In AD, Sofia. The price offered per share is BGN 4.

2. The Commission approved a tender offer submitted by Chimimport AD, Sofia City, for the purchase of shares of Prospecting and Extraction of Crude Oil and Gas
AD, Sofia, from the company’s other shareholders through the Investment Intermediary Real Finance AD, Varna. The price offered per share is BGN 26.50.

3. The Financial Supervision Commission issued a licence to Bulgaria Real Estates Fund SPV to perform activities as a special purpose vehicle, and namely: investment of pecuniary means raised through issuance of securities in real estates (securitization of real estates).
The Commission approved a prospectus for public offering of 150,000 ordinary voting shares, having a nominal value of BGN 1 each, issued by Bulgaria Real Estates Fund SPV as a result of initial increase of company’s registered capital.

4. The Financial Supervision Commission approved prospectuses for the public offering of share units of two mutual funds: Capital Invest Master Fond I traditionell and Capital Invest Master Fond II dynamisch. The funds’ managing company is Capital Invest, a subsidiary of Bank Austria Creditanstalt Gruppe GmbH. The prospectuses of both funds contain additional information intended for the Bulgarian investors, which reflects the specificity of share units offering in Bulgaria. The funds’ principal prospectuses have also been approved by the Austrian Financial Market Authority.
Investment intermediary in the sale (issue) and the funds’ units repurchase is to be HVB Bank Biochim AD.

5. The Commission passed an Amendment Ordinance to ORDINANCE No. 12 of December 10, 2003 on the terms of and the procedure for determing the minimum rate of return resulting from the management of supplementary mandatory pension fund assets, on covering the differnce up to the minimum rate of return, as well as on the establishment and utilization of the reserves for guaranteeing the minimum rate of return. The Ordinance’s promulgation in the State Gazette is forthcoming.

6. The Commission adopted Practice on the Implementation of Art. 180а of the Social Insurance Code. The Practice is to be published on the Commission’s website, Documents Section.

 1. The Commission imposed a temporary prohibition on a tender offer submitted by S&B Holding GmbH, Oberhausen, Germany, for the purchase of shares of Bentonit AD, Kardjali, from the company’s other shareholders through the Investment Intermediary Economic and Investment Bank PLC.

 2. The Commission approved a tender offer submitted by Bulgaria – Tex AD, Svilengrad, and Bulgaria 2000 AD, Kazanlak, for the purchase of shares of Bulgaria – К AD, Kazanlak, from the company’s other shareholders through the Investment Intermediary Bulbrokers AD, Sofia City. The price offered per share is BGN 24.

 3. The Commission imposed a final order of prohibition on a tender offer submitted by LUKOIL EUROPE HOLDINGS B.V., Holland, for the purchase of shares of LUKOIL NEFTOCHIM BURGAS AD, Burgas, from the company’s other shareholders through the Investment Intermediary Raiffeisenbank (Bulgaria) EAD, Sofia City.

 4. The Commission approved a tender offer submitted by ET Zaara – Yancho Ivanov, Stara Zagora, for the purchase of shares of Parvomai BT AD, Parvomai, from the company’s other shareholders through the Investment Intermediary Aval In AD, Sofia City. The price offered per share is BGN 4.49.

 5. The Commission entered Interlogic-Leasing SA, Sofia City, as a public company. The securities issue to the amount of BGN 725,710, allocated in 72,571 pieces of ordinary, registered shares, having a nominal value of BGN 10 each was also entered. The said issue constitutes the company’s court registered share capital.
 
6. The Commission adopted a Regulation on the own funds and solvency margins requirements of the insurers and health insurance companies. Its promulgation in the State Gazette is forthcoming.

Under the Regulation adopted, provisions settling for the first time the procedures for performing supervision over the solvency of insurers on consolidated basis were included. Thus, the requirements of Directive 98/78/EC on the supplementary supervision of insurance undertakings in an insurance group are completely introduced.
On the other hand, by adopting the new Regulation on the own funds and solvency margins requirements of the insurers and health insurance companies, the requirements of Directives 12 and 13 of 2002 of the EC regarding the determination of the solvency margin of the insurance undertakings are fully applied.
 At the same time, several texts were also specified, which texts could be ambiguously interpreted, and some omissions and incompleteness of the Regulation hitherto effective as established in the process of its implementation were removed.

1. The Commission imposed a temporary prohibition on a tender offer submitted by Zavod za Metalorezheshti Mashini – Bulgaria Holding AD, Sofia City, for the purchase of shares of Mashstroy AD, Troyan, from the company’s other shareholders through the Investment Intermediary Aval In AD, Sofia.

2. The Commission imposed a temporary prohibition on a tender offer submitted by Terra Tour Service EOOD, Sofia City, for the purchase of shares of Eztour JSC, Sofia City, from the company’s other shareholders through the Investment Intermediary Karoll AD Financial House, Sofia City.

3. The Commission entered into its Public Register an issue of securities issued by Colos-1 JSC Special Purpose Vehicle (SPV). The issue has the following parameters: 103 pieces of ordinary voting shares, having a nominal value of BGN 1,000 each. The initial public offering of this issue’s shares has been successfully concluded and trading of the issue at the Stock Exchange is forthcoming.

4. The Commission approved a request submitted by the Investment Intermediary CEE Securities JSC, Sofia City, on the issuance of approval for effecting transactions under Art. 54, Para. 1, Item 3 of the POSA. The extended licence allows CEE Securities JSC to manage individual securities portfolios and/or customers’ monies, except for portfolios of investment companies and pension funds.

5. The Commission withdrew the licence for conducting activities as an investment intermediary issued to X-Pit & Co. OOD at the request of the intermediary.

6. The Commission adopted Practice on the Implementation of Art.26, Para.2 of the Special Purpose Vehicles Act.
The above Practice relates to the type and form of the declarations that the persons managing and representing a special purpose vehicle are to submit to the Financial Supervision Commission.

The document is to be published on the Commission’s website, Documents Section, Instructions & Requirements.

7. The Commission recognized Kalin Krasimirov Metodiev’s qualifications acquired abroad, requisite to conduct activities as an investment consultant in Bulgaria.