1. The Commission approved a tender offer submitted by Energoremont Holding JSC, Sofia City, for the purchase of shares of Energoremont Russe AD, Russe, from the company’s other shareholders through First Financial Brokerage House Ltd. Investment Intermediary. The price offered per one share is BGN 15.68.

 2. The Commission approved a request submitted by Dealing Financial Company AD, under which request the Investment Intermediary surrenders the right to undertake transactions in securities for its own account and underwriting of issues.

1. The Commission approved a tender offer submitted by Radino AD, Sofia City, for the purchase of shares of Krameks JSC, Sofia City, from the company’s other shareholders through Financial House Ever Inc. Investment Intermediary, Sofia City. The price offered per one share is BGN 11.42.

2. The Commission issued a licence to Elana Fund Management Inc. Management Company to organise and manage Elana Balanced Eurofund Contractual Fund. The Commission approved a prospectus for public offering of the Fund’s units. The Fund and the unit issue have been entered into the FSC’s Public Registry.

3. The Commission issued an actuarial licence of pension assurance companies and of the supplementary pension insurance funds managed by these to Albena Mladenova Petrova.

1. The Commission confirmed a prospectus for secondary public offering of an issue of naked corporate debentures, issued by UBB AD, Sofia City. The issue is to the amount of BGN 80,000,000, distributed into 80,000 pieces of debentures, having a nominal value of BGN 1,000 each, a 36-month maturity, maturity date: July 15, 2008, annual interest rate to the amount of 3.55%, and interest payments every six months.

2. The Commission imposed a temporary prohibition on a tender offer submitted by Energoremont Holding JSC for the purchase of shares of Energoremont Russe AD from the company’s other shareholders through First Financial Brokerage House Ltd. Investment Intermediary.

1. The Commission entered Advance Terrafund REIT as a public company. The Commission also entered an issue of the company’s shares for the purpose of trading these on a regulated market. The said issue amounts to 150,000 pieces of shares, having a nominal value of BGN 1 each. The issue’s initial public offering has been successfully completed.

2. The Commission issued a licence to BenchMark Asset Management AD Management Company to organise and manage a BenchMark Fund – 1 Contractual Fund. The Commission approved a prospectus for public offering of the Fund’s units. The Fund and the unit issue have been entered into the FSC’s Public Registry. The Contractual Fund is of the conservative type. Each unit’s nominal value is BGN 100.

3. The Commission issued a licence to DSK Asset Management Management Company to organise and manage a DSK Balanced Fund Contractual Fund. The Commission approved a prospectus for public offering of the Fund’s units. The Fund and the unit issue have been entered into the FSC’s Public Registry. Each unit’s nominal value is BGN 100.

4. The Commission imposed a final prohibition on a tender offer submitted by Bul-Vin EOOD, Petrich, for the purchase of shares of BRAVO JSCo, Kolarovo Village, from the company’s other shareholders through Zagora Finacorp JSCo Investment Intermediary, Stara Zagora.

5. The Commission passed Ordinance on Amendments to Ordinance No. 11 on authorizations to carry out activity as Stock Exchange, organiser of unofficial securities market, investment intermediary, investment company, management company and special investment purpose company. The publication of the said Ordinance in the State Gazette is forthcoming.
Under the above Ordinance, it is provided for amendments to the Ordinance valid until now with a view to its alignment with the amendments to the POSA (SG, Issue 39 of May 10, 2005). The term ‘permit’ has been substituted by ‘licence’. The requirements with regard to the documentation required for issuance of a licence to organise and manage a contractual fund; for issuance of an approval to amend the contractual fund’s rules and regulations, and/or the portfolio evaluation rules, and fixing the contractual fund’s assets’ net value, and for issuance of an approval to amend the depository services contract are established. Upon issuance of a licence to an investment intermediary and to a management company, the requirement to submit a document for initiation fee deposited with the Investors in Securities Compensation Fund, and a bank document certifying that each person of those subscribed units or shares has deposited the full amount of the installments due is introduced. A requirement is introduced with reference to the investment intermediaries to submit an activity plan and rules and regulations regarding the private transactions in securities of the members of the management and supervisory bodies of the investment intermediary, the investment intermediary’s employees, and the persons related to these. Similar requirement is also introduced with reference to the management companies.

The following grounds for the divestiture of the aforesaid licence to perform insurance activity have been established:

Upon an on-site inspection undertaken and while carrying out current supervision, it has been ascertained that the company is in bad financial standing and it may not duly perform its obligations under insurance contracts.

Numerous breaches have been established, such as considerable understatement of the insurance reserves with at least BGN 909 thousand, considerable shortage of assets needed to cover the reserves with at least 95.2 per cent, fictitious considerable enhancement of the company’s financial result resulting from incorrect accountability with at least BGN 3,519 thousand. The company has been submitting erroneous financial information to the supervisory institution, where by so doing the said company has obstructed the establishment of its actual financial standing.

Unjustified non-payment, delayed payment and partial payment of exigible and liquid liabilities under insurance contracts have been ascertained.
It has also been established that the company does not pay or delays payments on liabilities under insurance contracts incontestably established through the court (13 execution actions to a total amount exceeding BGN 200 thousand).

Upon an inspection undertaken at the company and at the judicial executive office, it has been ascertained that the said insurer has not been implementing the coercive administrative measure imposed by the FSC in 2004, under which the above insurer was obligated to remove the infringements established in its activities with regard to liquidation of damages and to undertake the necessary measures for the prompt payment of all amounts due under insurance contracts.

The breaches established are substantial and numerous, and each one of these alone is a legal basis for licence divestiture.

With its actions, the company has injured social relations of considerable importance with regard to the insured persons, the stability, the transparency of and trust in the insurance market. As of the present moment, the measures undertaken by the supervisory authority have not led to a positive change in the irregular practices established in the insurer’s activity.

With a view to protecting the interests of the insured persons and maintaining the insurance market’s stability, the FSC has imposed the only adequate measure – divestiture of the licence issued to Hildon AD Insurance Company to perform insurance activity.

In order to perform direct supervision over the insurer’s activities during the period prior to the appointment of a liquidator or an assignee in bankruptcy, the Financial Supervision Commission has appointed a quaestor.

1. The FSC confirmed a prospectus for secondary public offering of an issue of municipal bonds, issued by Stara Zagora Municipality. The issue is to the amount of BGN 5,000,000; distributed into 5,000 pieces of bonds, having a nominal and issue value of BGN 1,000 each.
The issue has a 120-month maturity, fixed coupon of 6% on annual basis, a six-month period of interest payment, issuance date: May 31, 2005, and a maturity: May 31, 2015.
Stara Zagora Municipality was entered into the FSC’s Public Registry as an issuer.

2. The Commission confirmed a prospectus for secondary public offering of corporate bonds, issued by TBI Credit EAD, Sofia City. The issuer and the issue were entered into the FSC’s Public Registry.
The issue is to the amount of BGN 20,000,000, distributed into 20,000 pieces of bonds, having a nominal and issue value of BGN 1,000 each, a 36-month maturity, fixed coupon of 7.5% on annual basis, a six-month period of interest payment, issuance date: July 6, 2005, and a maturity: July 6, 2008.

3. The FSC approved an application submitted by Real Finance AD Investment Intermediary, Varna, for abandonment of effecting transactions in securities for own account, underwriting securities issues and borrowing securities.

4. The Commission adopted Practice on Liquid and Exigible Liabilities of an Insurer.
The said Practice shall be published on the FSC’s website, Documents Section, Instructions and Requirements.

5. The FSC acknowledged the qualifications to perform activity as an investment advisor acquired by Georgi Georgiev Koynov.

The Commission entered Web Media Group JSC, Sofia City, as a public company into the FSC’s Registry. The Commission also entered an issue of the company’s shares for the purpose of trading these on a regulated market. The issue is a result of increase in the company’s capital from BGN 710,000 to BGN 1,420,000 through issuance of new 710,000 pieces of shares, each having a nominal value of BGN 1.

1. The Commission imposed a temporary 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 JSC Financial House.

2. The Commission entered Sturgeon AquaFarms Bulgaria, LLC. as a public company into the FSC’s Registry. The Commission also entered an issue of shares, which issue is a result of increase in the company’s capital from BGN 1,000,000 to BGN 1,716,330 through issuance of new 71,633 pieces of shares, each having a nominal value of BGN 10.

3. The Commission entered into the Public Registry an issue of shares with the purpose of trading these in a regulated securities market, issued by Elana Agricultural Land Opportunity Fund REIT. The issue, whose initial public offering was successfully completed, amounts to 1,996,068 pieces of shares, each having a nominal value of BGN 1.
 
4. The Commission adopted Practice on the Application of Art. 31, Para. 1, Item 4 of the Insurance Act in connection with Art. 252, Para. 1, Item5 of the Commerce Act.
The above Practice clarifies the procedure for divestment of a licence of an insurance joint-stock company in the presence of inadequacy in the net asset value in relation to the registered capital and inaction by the insurer’s General Meeting of Shareholders. The concept of ‘net asset value’ is clarified, and the possible measures are specified, which may be undertaken by the insurers in order to rectify the discrepancy between the net value and the registered capital.
The said Practice shall be published on the FSC’s website, Documents Section – Instructions and Requirements.
 
5. The Commission adopted Instructions with regard to the interpretation and application of Art. 5, Para. 3 and Art. 7 of Ordinance No. 19 of the FSC of December 8, 2004 on the terms of establishing pension reserves in the pension insurance companies managing a universal pension fund and/or supplementary voluntary pension insurance fund.
Under the above Instructions, the moment of establishing a pension reserve by the pension insurance company for the respective fund managed by it and paying life pensions is specified.
The said Instructions shall be published on the FSC’s website, Documents Section – Instructions and Requirements.

1. The Commission approved an amended tender offer submitted by Yaitsa i Ptici AD (Eggs & Birds JSC), the village of Donchevo, for the purchase of shares of Yaitsa i Ptici – Zora AD, the village of Donchevo, from the company’s other shareholders through Bulbrokers AD Investment Intermediary. The price offered per one share is BGN 29.32.
2. The FSC adopted Regulations on the Structure and Activities of the Investors in Securities Compensation Fund.
The publication of the said Regulations in the State Gazette is forthcoming.
3. The FSC adopted at second reading a Final Draft of the Insurance Code.

1. The Commission entered into the FSC’s Registry an issue of shares to the amount of 2,262,267 pieces of ordinary, dematerialized, registered, freely transferable voting shares, having a nominal and issue value of BGN 1 each, and issued by Bulgarian Rose Sevtopolis JSC, Kazanlak.

2. The Commission did not issue a temporary prohibition on the publication of a tender offer submitted by Tourist Trust Single Person LLC, Sofia City, for the purchase of shares of Intertravelservice JSC, Sofia City, from the company’s other shareholders through the Investment Intermediary Capman Inc., Sofia City. The price per share is BGN 22.31.

3. The Commission denied issuance of an approval for an amended prospectus for secondary public offering of an issue of shares issued by Hygia JSC Multi-Profile Hospital for Active Treatment /MPHAT/, Pazardjik, and entering the company as a public one.

 4. The Commission divested Aval IN JSC Investment Intermediary, Sofia City, of the right to effect transactions in securities for its own account and to underwrite issues of securities.

 5. The Commission issued a licence to DSK Asset Management AD to perform the following activities in its capacity of a management company:
– Managing the activities of collective investment schemes and of close-ended investment companies, including:
• investment management;
• administration of units or shares, including legal and accounting services in connection with the asset management, investors’ information requests, assets evaluation and calculation of the units or shares’ price, control on the observance of the legal requirements, keeping of the unit holders or shareholders’ book, allocation of dividends and other payments, issuance, sale and repurchase of units or shares, fulfillment of contracts, book-keeping;
• marketing services.

DSK Asset Management AD Management Company may also provide the following extra services:
• management, pursuant to a contract concluded with the customer, of an individual portfolio, including such of an institutional investor, including securities, at the company’s own discretion, without special orders submitted by the customer;
• provision of investment consultancy with regard to securities.

 6. The Commission adopted at first reading a Draft Ordinance on Amendments to Ordinance No. 18 of November 10, 2004 on the compulsory insurance. The said Draft shall be published on the FSC’s website.

7. The Commission issued a permit to TBI ASSET MANAGEMENT EAD Management Company to organise and manage TBI DYNAMIC Contractual Fund.
The Commission entered the Fund into the Registry kept by the FSC.
The Commission approved a prospectus for public offering of units of TBI DYNAMIC Contractual Fund and entered the issue of units into the Public Registry kept by the FSC.
The Commission entered the Fund as an issuer into the Registry kept by the FSC.

8. The Commission issued a permit to DSK ASSET MANAGEMENT Management Company to organise and manage DSK STANDARD Contractual Fund.
The Commission entered the Fund into the Registry kept by the FSC.
The Commission approved a prospectus for public offering of units of DSK STANDARD Contractual Fund and entered the issue of units into the Public Registry kept by the FSC.
The Commission entered the Fund as an issuer into the Registry kept by the FSC.

9. The Commission issued a permit to SENTINEL ASSET MANAGEMENT AD Management Company to organise and manage SENTINEL – PRINCIPAL Contractual Fund.
The Commission entered the Fund into the Registry kept by the FSC.
The Commission approved a prospectus for public offering of units of SENTINEL – PRINCIPAL Contractual Fund and entered the issue of units into the Public Registry kept by the FSC.
The Commission entered the Fund as an issuer into the Registry kept by the FSC.