Acquisition of 8.4% Stake in Bulgarian Telecommunications Company

Global Finance is pleased to announce its participation in the acquisition of the Bulgarian Telecommunications Company (“BTC”) through its latest buy-out fund, the South Eastern Europe Fund (“SEEF”).

AIG Capital Partners won a competitive bid for 90% of BTC and invited Global Finance – in recognition of its established in-country presence throughout the region and its knowledge of the sector - to join the consortium controlling the company. SEEF invested €40 million for 8.4%.

BTC is currently listed on the Bulgarian Stock Exchange. The investors will launch a tender offer for the remaining BTC shares. The acquisition is believed to be the largest M&A transaction in Bulgaria to date.

BTC is the national telecommunication company in Bulgaria operating in fixed-line, mobile and broadband segments. The Company was privatised in 2004. The Company has more than 90% share in the fixed-line market and 35% share in the broadband market (ADSL). In 2005, BTC launched Vivatel, its mobile operation, as a third mobile entrant into the Bulgarian market and in 14 months has managed to achieve a 9% market share (as of end of 2006). Consolidated 2006 Sales and EBITDA were €516 million and €217 million respectively.

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