Mondi Stambolijski EAD (Bulgaria)

Bulgarian cellulose and paper mill Mondi Stambolijski EAD, former Paper Factory Stamboliiski (PFS), was initially established in 1952. It specialises in the production of kraft paper. Mondi Stambolijski EAD is part of international packaging and paper group Mondi. The company, based in the central town of Stamboliiski, is the legal successor of local paper mill Tselhart.
A total of 67% in Tselhart was offered for sale against privatisation vouchers under Bulgaria's mass sell-off programme in 1996-97. In November 1997, Turkey's Isiklar Holding acquired a 54.25% stake in Tselhart by buying up voucher privatisation shares four Bulgarian privatisation funds on the local stock exchange. In August 1998, Bulgaria's Privatisation Agency sold the remaining 23% state-owned stake in the company to Isiklar Holding for USD 2.1 million. In November 1998, the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC), extended two investment credits to Isiklar Holding, which placed Tselhart as collateral on the loans. The Turkish company however defaulted on its debt, Tselhart was declared insolvent and its creditors, the EBRD and IFC became the company's owners. In March 2002, Tselhart assets were sold for USD 28.9 million to Fabrika za Hartia Stamboliiski, fully-owned by the Elana investment intermediary. In May 2002, the EBRD and World Bank's private sector financing arm, the IFC, each acquired 50% in the new company. In 2006, Dutch paper manufacturer Mondi Packaging B.V. bought 100% in the Bulgarian paper mill, renaming it into Mondi Packaging Stambolijski EAD.