September 8 (SeeNews) - Energy and insurance group Eurohold Bulgaria [BUL:EUBG] said its indirect subsidiary Eastern European Electric Company (EEEC) acquired full ownership of Electrohold Sales [BUL:CEZE] and Electrodistribution Grid West [BUL:CEZD], or EDG West, former units of Czech energy group CEZ, and will delist them from the Bulgarian Stock Exchange.
The residual stakes were acquired in a squeeze-out which expired on Wednesday, Eurohold said in a press release.
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Under the transaction, EEEC, the majority shareholder of Eurohold energy business Electrohold, purchased the remaining 14,416 shares of EDG West at a price of 303.55 levs per share or a total of some 4.4 million levs ($2.2 million/2.2 million euro). The remaining 117 shares of Electrohold Sales were acquired at 29,161.02 levs per share, representing a sum of 3.4 million levs.
"As we have already announced, we have consolidated our participation in our subsidiaries and all companies within Electrohold group would be available for investors on the stock exchange through the ultimate owner - Eurohold, whose shares are traded on the stock exchanges in Sofia and Warsaw, and whose reports consolidate the results of all units of our energy group," Eurohold board chairman Kiril Boshov said. He added that the consolidation will improve the interest rate terms on the syndicated loan, which the company took out to finance the acquisition of the energy business.
EEEC initially offered to pay 300.29 levs per share for the remaining interest in EGW, in which it had raised its ownership to 98.93% in late March, and 28,158.30 levs per share for the remaining minority interest in Electrohold Sales, in which it also increased its stake in March, to 96.92%. The offers were later sweetened, following a ruling by Bulgaria's financial regulator.
In May, Electrohold Bulgaria said that it will aim to expand in neighbouring countries and to build a leadership position in the energy sector in the wider Central and Eastern Europe region.
(1 euro = 1.95583 levs)