Textiles and apparel: Orders are back Increase in Bulgarian exports of textiles and apparel. Reorientation of orders of global fashion brands from China to Bulgaria. Improved situation on foreign markets, but also credit indebtedness in the sector increased. Shrinking demand. In short - a complicated year. This summary describes the past 2012, according to Radina Bankova, Chairman of the Bulgarian Association of Producers and Exporters of Apparel and Textile (BAATPE). Because of the increased cost of labor and transportation costs to and from China, many European contracting entities returned. The geographical position of Bulgaria, modern machinery, technological capabilities, plus the flexibility of clothing enterprises make Bulgaria a preferred partner for fashion companies in Italy, France, Germany, etc. At the end of 2012 only 23% of Greek clothes were produced in Greece, according to the Greek association of companies working in the field of knitwear and garments (SEPEE). Still according to the same organization, Bulgaria is number one producer of Greek costumes with a share of 57%. It remains competitive because of low wages and because of the established image of good quality. These factors are especially important when ordering a small series of top brand clothing. The trend of return is favorable, but not definitive, because China still holds its own as a leader in sewing, according to experts from the sector saying that so far about 12 million Chinese made clothes for Europe.
Source: Capital (17.07.2013)

Sliven sew costumes from global brands Italian businessman Eduardo Mirolio, who became a Bulgarian citizen late last year and bought two houses in the center of Sliven, brings a new investor. Italian- Swiss Hera Holding wants to build a clothing factory in the city. Sliven will produce costumes for the world's biggest companies. Representative of the holding already held a meeting with the mayor Nikola Milev. Company's goal is to open by the end of November and the factory will initially hire 100 people and by the end of 2014 the number will reach 500. Most likely the factory will receive fabrics from the businesses of Eduardo Mirolio in Sliven and Yambol. After preparing the costumes they will depart for the prdering companies, including the most popular brands. Hera Holding announced a telephone for recruitment. In the months from September to November seamstresses for making men's clothing will be accepted. The city gradually regained its image as a textile center. In the city already operate dozens of small shops and businesses associated with the textile industry.
Source: Standart (27.09.2013)

Tobacco Investment, a Dubai-based company that acquired 20% of Agro Finance REIT in the beginning of the month, transferred its share to KOOP Investment against BGN 17.5 million three weeks later. Thus KOOP Investment’s stake in the REIT grows from 24.36% to 44.36%. Many companies controlled or connected to banker Tsvetan Vasilev hold stakes at the REIT, including his bank - Corporate Commercial Bank (CCB) - with 7.42%.
Source: Capital (29.10.2013)

E. Miroglio raises stake in Bulgaria’s Bulgartabac Holding to 10.44% Luxembourg-based company E. Miroglio Finance raised its stake in Bulgaria's Bulgartabac Holding [BUL:57B] to 10.44% in a block deal on the stock exchange, the holding said in a bourse filing. The investor bought 161,950 shares of the tobacco group, equal to 2.2% of its capital. The deal was registered with the country’s central depository on November 5, Bulgartabac Holding added. Bulgartabac did not disclose the value of the transaction but stock exchange data show that some 161,950 shares of Bulgartabac Holding were traded on November 1 for an avåràge price of 101 levs apiece. Bulgartabac is 79.83% owned by BT Invest GmbH. The holder of E. Miroglio Finance, investor Eduardo Miroglio, already owns in Bulgaria a textile company and a winery. In addition E. Miroglio Finance acquired in February 22% in one of the biggest farmland funds in the country, Agro Finance.
Source: Capital (07.11.2013)

Foreigners flee from BG farm land: Business giant Miroglio next to sell his stake in BG agri-fund While the Bulgarians are over-concerned that foreigners will buy up their fields following the lifting of the moratorium on foreigner purchase of Bulgarian farmland, in reality, companies from abroad are rather trying to get rid of their ownership of BG land. Problems in Bulgaria's agriculture chase investors away and now Edoardo Miroglio is another businessman who withdrew his investments in agricultural land in Bulgaria. Late last week it became clear that the Italian, who deals with wine and textiles in the country, has sold his shares in his "Agro Finance" fund. The Italian businessman purchased his stake only at the beginning of the year, yet decided to withdraw 8 months afterwards. According to unofficial data the amount received from the sale of shares is about BGN 17 million, as at the time of sale of the average price of the securities was BGN 2.35. As for now, there is no official comment on the reasons why the Italian decided to part with 22,07% of the agro-fund. However, experts commented that the background of the decision is probably the expected depreciation of the shares in the future due to the poor situation of Bulgarian agriculture. The lack of profits in order to maintain and develop the branch make it a ''loser''. The same trend is happening even in the field of grain, which is considered the most profitable segment. Because of the tendency of the constantly squeezing profits of farmers, it is expected that rents and prices of agricultural land will continue to fall. "Agro Finance", the fourth largest agricultural fund in Bulgaria, has not bought new plots since nearly a year. The same is true for the majority of other funds operating in the country. Last year, ELARG Fund restructured itself and sold nearly 200,000 acres of land. Similarly, "Advance Terrafund" which currently has over 240 thousand acres, sold nearly 80,000 acres in 2012.
Source: Standart (11.11.2013)