Bulgaria plans to purchase the sports city RS City from Sofia's real estate.

The Bulgarian company Real Estate Sofia REIT [BUL:NIS] has announced plans to seek approval from its shareholders to acquire the local sports equipment provider RS City Sport for7.4 million levs ($4 million/3.8 million euros). Real Estate Sofia intends to acquire all shares of RS City Sport from its four shareholders - Adara, Besatur, Zagora Fininvest, and Chernomorski Holding, as stated in a release posted on the stock exchange.

RS City Sport's assets amounted to BGN 48.2 million at the end of June, according to its latest unaudited financial report. The acquisition will improve Real Estate Sofia's profitability and increase its assets on an individual and consolidated basis, which will have a positive impact on the company's financial results.

The proposal will be subject to a vote at an extraordinary general meeting of Real Estate Sofia REIT shareholders scheduled for November 20.

Earlier this month, Real Estate Sofia announced the acquisition of local rival Kabakum Estates for 1.7 million leva.

Real Estate Sofia shares were last traded at 7.90 leva on the Bulgarian Stock Exchange, exchange data shows. (1 euro = 1.95583 leva)