Energoni faces probe on BGN 20m share transactions - report

(ADPnews) - Oct 8, 2010 - Shareholders of Bulgarian renewable energy company Energoni and related entities have transferred shares worth almost BGN 20 million (USD 14m/EUR 10m), triggering a complaint with the country's national security agency DANS on suspicion of money laundering.

The complaint was filed by the Financial Supervision Commission (FSC), according to a document obtained by daily Dnevnik.

Energoni has almost no assets but still boasts the largest equity capital, of BGN 547 million, among all companies listed on the Bulgarian Stock Exchange (BSE).

The two share transactions took place at end-September on the unregulated segment of the BSE through investment brokerage Mac Cap.

On September 23, Greek national Dimitrios Aivaliotis (who held a 43.3% stake prior to the transaction) sold to his compatriot Michail Georgopapadakos (28.5%) a total of 128.65 million shares for the amount of BGN 16.7 million, or BGN 0.13 per share. Then the latter, who serves as the company's executive director, sold more than 64 million shares to a company bearing the same name as the brokerage, Mac Cap PLC, for over BGN 2.5 million, or BGN 0.04 per share. From this transaction alone, Georgopapadakos incurred a loss of some BGN 5.8 million.

The buyer and the eponymous brokerage are both owned by Maksim Dimov, who is a board of directors member and shareholder in Energoni through Mac Cap Holding (11.7%).

Georgopapadakos declined to comment on the matter for Dnevnik, explaining he is not aware of any probe being carried out by DANS into the company. He revealed that a new transaction with Energoni will take place in the coming days, but did not elaborate.

Dimov could not be reached for comment by Dnevnik.

Energoni listed on the BSE in autumn 2008 without any history and almost no assets. In April 2010, the FSC halted trade in the company's shares but only after registering a capital hike following the merger into Energoni of Royal Resorts and its subsidiary Royal Investments. The latter held a wind farm patent whose value rocketed from BGN 9 million to BGN 547 million within a couple of years. Thus Energoni became the largest company listed on the BSE in terms of market capitalisation.

Energoni says on its website it plans to develop 300 MW of wind parks and 30 MW of photovoltaic (PV) power stations.

(BGN 1.0 = USD 0.710/EUR 0.511)

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