State Consolidation Company

The State Consolidation Company (Bulgarian: „Държавна консолидационна компания“ ЕАД, often abbreviated DKK) is a Bulgarian single-member joint-stock company wholly owned by the state. It was established in its current form in 2010 as part of the government's National Anti-Crisis Programme, when the existing company National Technological Centre for Climate Change was renamed State Consolidation Company by decision of the Minister of Economy, Energy and Tourism, implementing Council of Ministers Decision No. 180 of 1 April 2010. The rights of the sole owner of capital are exercised by the Minister of Economy. The company's core mandate is to consolidate and manage state-owned minority shareholdings in commercial companies and to sell them, thereby generating budget revenue and supporting economic recovery, employment and budget discipline. It also acts as a holding and restructuring vehicle for strategically important state enterprises. According to its mission statement, it aims to achieve the maximum positive effect from the management of entrusted property through high corporate governance standards, long-term policies and strategies, and the adoption of good global practices and innovations, while adhering to principles of sound financial management and legality. It positions itself as a successful manager of subsidiaries with different lines of business and investments in key sectors of the economy. The company is the sole owner or majority shareholder in a number of commercial companies. Bulgarian Wikipedia lists sixteen such companies, divided into two main streams: strategic subsidiaries and subsidiaries undergoing restructuring. Named subsidiaries include Montazhi EAD, Avionams AD, Kintex EAD, NITI EAD, Vazovski Mashinostroitelni Zavodi EAD (VMZ), El Bi Bulgaricum EAD, Eko Antracit EAD, the National Institute for Research and Certification EOOD, Ekoinzhenering – RM EOOD and the Institute of Marketing. A landmark transaction occurred in 2012, when the company realized revenue of nearly BGN 276,500,000 from the sale of minority stakes in EVN Bulgaria Elektrosnabdyavane AD, EVN Bulgaria Elektrorazpredelenie AD, E.ON Bulgaria Prodazhbi AD, E.ON Bulgaria Mrezhi AD, CEZ Elektro Bulgaria AD and CEZ Razpredelenie Bulgaria AD, following an open procedure by the Privatization and Post-Privatization Control Agency through a public offering on the Bulgarian Stock Exchange. In 2013, the company provided a capital increase of BGN 27,000,000 to Vazovski Mashinostroitelni Zavodi, the largest state enterprise in the military-industrial complex, which was experiencing serious financial difficulties; this ensured the plant's financial stability and allowed payment of a large part of delayed worker remuneration. The State Consolidation Company is headquartered in Sofia at 9 Lachezar Stanchev Street, floor 4, Izgrev district, 1797 Sofia. It maintains a public website with sections on its activity, history, mission and values, management bodies, statute, financial information, subsidiaries and access to public information.

The State Consolidation Company (DKK) in its current form was created in 2010 as part of the Bulgarian government's National Anti-Crisis Programme. By a protocol of the Minister of Economy, Energy and Tourism, the existing company National Technological Centre for Climate Change EAD was renamed State Consolidation Company EAD. This change implemented Council of Ministers Decision No. 180 of 1 April 2010, which approved measures to restore the economy, increase employment and improve the living standard of the population, combined with measures to increase budget revenues and restore budget discipline in the country. The plan envisaged the privatization of all minority participations in the capital of commercial companies owned by the Bulgarian state, through their initial contribution in kind to the capital of State Consolidation Company EAD and subsequent sale by the company. In 2012, the company achieved a major privatization success, realizing revenue of nearly BGN 276,500,000 from the sale of minority stakes in six energy distribution and supply companies: EVN Bulgaria Elektrosnabdyavane AD, EVN Bulgaria Elektrorazpredelenie AD, E.ON Bulgaria Prodazhbi AD, E.ON Bulgaria Mrezhi AD, CEZ Elektro Bulgaria AD and CEZ Razpredelenie Bulgaria AD. The sale followed an open procedure by the Privatization and Post-Privatization Control Agency through a public offering on the Bulgarian Stock Exchange. In 2013, the company intervened to support Vazovski Mashinostroitelni Zavodi (VMZ), the largest state enterprise in the military-industrial complex, which was experiencing serious financial difficulties. DKK increased VMZ's capital by BGN 27,000,000, which provided financial security to the plant and allowed payment of a large part of delayed worker remuneration. According to Bulgarian Wikipedia, the company is the sole owner or majority shareholder in sixteen commercial companies, divided into strategic subsidiaries and subsidiaries in the process of restructuring. Named subsidiaries include Montazhi EAD, Avionams AD, Kintex EAD, NITI EAD, Vazovski Mashinostroitelni Zavodi EAD, El Bi Bulgaricum EAD, Eko Antracit EAD, the National Institute for Research and Certification EOOD, Ekoinzhenering – RM EOOD and the Institute of Marketing. The company continues to operate as a state-owned holding, managing these assets and pursuing its mission of sound financial management, innovation and socially responsible impact.

• 2013

  Increased the capital of Vazovski Mashinostroitelni Zavodi (VMZ) by BGN 27,000,000 to stabilize the financially troubled military-industrial enterprise and pay delayed worker remuneration.

• 2012

  Realized revenue of nearly BGN 276,500,000 from the sale of minority stakes in EVN Bulgaria, E.ON Bulgaria and CEZ Bulgaria energy companies via public offering on the Bulgarian Stock Exchange.

• 2010

  Company renamed from National Technological Centre for Climate Change EAD to State Consolidation Company EAD, implementing Council of Ministers Decision No. 180 of 1 April 2010 as part of the National Anti-Crisis Programme.

A state-owned holding company positioned as a successful manager of subsidiaries with different lines of business and investments in key sectors of the economy, committed to high corporate governance standards, innovation and socially responsible impact.

• Privatization of minority state shareholdings

  Sale of state-owned minority stakes in commercial companies, including the 2012 sale of stakes in EVN Bulgaria, E.ON Bulgaria and CEZ Bulgaria energy companies.

• Holding management of strategic subsidiaries

  Management and oversight of subsidiaries such as Kintex, Avionams, Montazhi, NITI, VMZ, El Bi Bulgaricum and others.

• Restructuring of state-owned enterprises

  Financial and organizational restructuring of state-owned companies in difficulty, such as the 2013 capital increase for VMZ.

1. 1„Държавна Консолидационна Компания“ ЕАД – official websitestateconsolidationcompany.bg
2. 2История – „Държавна Консолидационна Компания“ ЕАДstateconsolidationcompany.bg
3. 3За Нас – „Държавна Консолидационна Компания“ ЕАДstateconsolidationcompany.bg
4. 4Мисия и ценности – „Държавна Консолидационна Компания“ ЕАДstateconsolidationcompany.bg
5. 5State Consolidation Company – Wikidatawikidata.org
6. 6Държавна консолидационна компания – Wikipedia (Bulgarian)bg.wikipedia.org