The entertainment city project near Musachevo would be traded on the BSE (02.09.2014)
The investor Bulgaria Development Holdings Ltd. plans to merge with the public company Welcome Holdings.
The gigantic multibillion project of Steven Lo would be traded on the BSE. This would happen through the company Welcome Holdings, which he acquired from Greek investors this spring. From the General Shareholder Meeting of Welcome Holdings, it became clear that the goal is to merge with another company owned by Steven Lo – Bulgaria Development Holdings Ltd., which acquired a priority investor Certificate for the project in Musachevo. The general shareholders of Welcome Holdings would vote on the possible increase of capital to BGN 10bn through a share issue. Majority shareholder of the holding is Steven Lo, who controls 95% of the capital – BGN 50,000. The other 5% are held by Ivan Todorov Ivanov.
The plans to convert Bulgaria Development Holding Ltd. into a public company were announced early in the summer, when the project near Musachevo was officially presented. The executive director of the company Josie Lock said that they would invest over BGN 1.5bn and would construct a complex with 4 and 5 star hotels, SPA center and entertainment facilities on an area of 1500 to 2000 decares near Musachevo.
The listing of the project would be done in several stages. The first stage is to merge Bulgaria Development Holding Ltd. with Welcome Holdings. The newly formed company would take the name of the merging company. This way, as a majority shareholder of Welcome Holdings, Steven Lo would regain control of the St. Sofia project since several months ago, the Hong Kong based Better Crown Ltd. took over Bulgaria Development Holding Ltd. The main reason for that is the 5 year sentence Steven Lo received due to his participation in corruption schemes in Macao, for which, the Chinese investor cannot obtain an investor-class certificate.
Construction of the project goes in parallel with the changes in the companies. According to the schedule, the construction has to be finished by 2017. The entertainment city would spread over private, municipal and government land.
The acquisition of 4 areas belonging to the Ministry of Defense with a total area of 1000 decares has already been negotiated. On the 18th of September permission would be granted from the municipality of Elin Pelin for the sale of 300 decares near Musachevo. The mayor of Elin Pelin Galya Georgieva pointed out that a valuation of the land is being prepared.
Meanwhile, it became clear that Steven Lo expressed interest in the purchase of St. Sofia golf course, which would be part of the major entertainment project, the deal is yet to be finalized.
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