Financial and business news from Bulgaria

“Eurohold” ready to finalize the deal for CEZ assets in Bulgaria

Funding will be provided through own funds and borrowed capital from leading global investment banks, the holding report
After EWRC authorised Eurohold Bulgaria to acquire CEZ Distribution Bulgaria, the holding received all necessary regulatory permits to realize the acquisition of the company of the Czech CEZ Group in Bulgaria. This was said in a statement from the holding to the media.

The deal was already approved by the Commission for Protection of Competition on 29 October last year, the company recalled.

“ Eurohold” will gain control over the business of CEZ Group in Bulgaria through its subsidiary and specially established for this purpose Eastern European Electric Company B.V. (EEES). The deal includes 67% of the capital of the electricity distribution company CEZ Distribution Bulgaria and the public power supply company CEZ Electro Bulgaria, as well as 100% of the shares of the licensed electricity trader CEZ Trade Bulgaria, the IT services company - CEZ ICT Bulgaria, the photovoltaic park “Fry Energy Project Orestets”, the company for production of electricity from biomass - “Barra Group”, and “CEZ Bulgaria”, which coordinates and manages the activities of all companies of the Czech group in the country.

The next steps in the realization of the transaction are the signing of the financing contracts and the transfer of shares. Funding will be secured through own funds and borrowed capital from leading global investment banks, the announcement said.

“Authorisations from the Antimonopoly Authority and the Energy Regulator allow us to proceed with the financing and finalisation of the transaction. We have the support of global investment banks with extensive experience in such transactions, which will secure the required borrowed capital. Upon completion of the acquisition, we will work for the creation of a strong regional utility company,” commented Vasil Stefanov, Head of Acquisitions and Mergers at Eurohold Bulgaria.





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