The Bulgarian Energy and Water Regulatory Commission has approved the transaction through which Eurohold Bulgaria acquires the local subsidiaries of CEZ Group. The agreement includes the acquisition of seven subsidiaries of the CEZ Group in Bulgaria, including 67% of the largest electricity company – CEZ Distribution Bulgaria and the largest electricity supplier – CEZ Electro Bulgaria, 100% of the shares of the largest authorized electricity trader – CEZ Trade Bulgaria, as well as CEZ Bulgaria, which coordinates and manages all subsidiaries.
The agreement had been approved by the Commission for the Protection of Competition since October 29, 2020. The next stage of the procurement process will be the signing of financing contracts and the actual transfer of shares. Eurohold will finance the acquisition through a combination of equity and bank financing lines.
“We have obtained approvals from the Bulgarian antitrust and energy regulators so that we can continue to finance and complete the transaction. We have the support of global investment banks, which have solid experience in financing such transactions. After the completion of the acquisition, we propose to develop into an important regional provider of insurance and utility services,” said Vasil Stefanov, coordinator of mergers and acquisitions at Eurohold Bulgaria.
Eurohold will acquire the subsidiaries of the CEZ group in Bulgaria through a newly established company: Eastern European Electric Company.
CEZ is the largest electricity supplier and distributor in Bulgaria, serving almost 3 million customers. In 2019, CEZ Bulgaria recorded total revenues and assets of EUR 700 million (BGN 1.4 billion). The company has over 3,000 employees in Bulgaria.
By acquiring CEZ Group’s subsidiaries in Bulgaria, Eurohold will focus on developing two main business sectors – insurance and energy. The total assets and revenues of the holding company will exceed EUR 1.5 billion, both in the insurance segment and in the energy supply and distribution segment. The holding company will serve more than 7 million customers and over 6,000 employees.