MTBS M&A News

MTBS M&A, the specialised corporate finance advisory firm in the port and maritime sector, is pleased to have advised Advance Properties OOD (“Advance Properties”) on its sale of a significant interest in BMF Port Burgas EAD (“BMF Port Burgas” or “the Port”) to the Three Seas Initiative Investment Fund S.A. SICAV-RAIF (“3SIIF”). Completion is subject to customary merger control approvals and is expected to take place in the third quarter of 2022.

BMF Port Burgas is the private, multipurpose terminal operator of Port Terminal Burgas East II and Port Terminal Burgas West. Situated in the Burgas Bay in Bulgaria, along the Black Sea Coast, the Port handles general cargo, containers, dry bulk, liquid bulk and project cargo. Combined, the two adjacent terminals feature 15 berths and five piers with a total quay length of 3,334 meters. BMF Port Burgas operates these terminals under two long-term concession agreements with Bulgaria’s Ministry of Transport and Communications. In 2021, the Port handled around 7 million tons of cargo.

Being the closest deep-sea port to the Bosphorus, and with a favourable location south of the Balkan Mountains, BMF Port Burgas is strategically located to serve clients in Bulgaria’s main consumption and industrial centres, i.e. Sofia and Plovdiv. Capitalising on this opportunity, the Port completed various strategic investments over the past decade, including the development of dedicated container, copper concentrate, LPG, sulphuric acid, grain and project cargo facilities. These investments have enabled BMF Port Burgas to build a track record of continuous growth and profitability.

MTBS M&A, as exclusive transaction and financial advisor, supported Advance Properties and BMF Port Burgas throughout the entire transaction process. Following a market sounding phase, MTBS M&A ran a successful, formal sell-side process on behalf of Advance Properties leading to final transaction negotiations with 3SIIF.

Georgi Domuschiev, Founder and Managing Director of Advance Properties OOD, said: “Advance Properties is very excited to partner with 3SIIF and together ensure the continued success of BMF Port Burgas. When we asked our advisor MTBS M&A to start a formal sale process, we already had a strong preference for selling a significant shareholding to a true long-term partner. We would like to thank MTBS M&A for managing the sale process and for ensuring that we reached our objectives. In addition, we feel that the transaction process has created a solid basis for the successful cooperation between Advance Properties and 3SIIF.”

Boris Balev, CEO of BMF Port Burgas EAD, noted: “The team of BMF Port Burgas is very happy to welcome the 3SIIF as a new shareholder of the Port. Over the last period we have gotten to know 3SIIF as an active and experienced partner and we believe that the combination of Advance Properties and 3SIIF as shareholders will greatly benefit the Port. We would like to thank MTBS M&A for managing the professional transaction process and supporting and helping the management team of BMF Port Burgas throughout the transaction and due diligence process. We look forward to working with both shareholders on the continued success of the Port.”

Theo Dersigni, Director of MTBS M&A, stated: “It has been a great honour to support Advance Properties and BMF Port Burgas on this transaction and create this important partnership with the 3SIIF. All of us look forward to contributing to the continued success of the Port. During the transaction, we very much appreciated the professional and focused approach of Advance Properties and BMF Port Burgas, as well as of 3SIIF and all advisors involved in the transaction. It was a pleasure working together and we wish Advance Properties and 3SIIF all possible success in their new partnership and trust that together they will ensure that BMF Port Burgas will continue to be an important and highly successful Black Sea port.”

Joint Press Release of Advance Properties OOD and Three Seas Initiative Investment Fund S.A. SICAV-RAIF: https://3siif.eu/news/3siif-makes-its-first-investment-in-the-port-sector.

For further information, please contact:

Theo Dersigni Director MTBS M&A E: theo.dersigni@mtbs.nl M: + 31 (0) 6 1064 1900
Adriaan de Gruijter Manager MTBS M&A E: adriaan.degruijter@mtbs.nl M: + 31 (0) 6 5316 0917