May 12 (SeeNews) - Energy and insurance group Eurohold Bulgaria [BUL:EUBG] increased its tender offers to the minority shareholders of Electrohold Sales [BUL:CEZE] and Electrodistribution Grid West [BUL:CEZD], former local units of Czech energy company CEZ, the target companies said.
The price per Electrohold Sales' [BUL:CEZE] share was increased to 28,433.51 levs ($15,201.51/14,537.82 euro), while the price per share of Electrodistribution Grid West was raised to 302.56 levs, the two companies said in separate bourse filings on Wednesday.
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The price amendments were notified by the bidder, Eurohold's wholly-owned subsidiary Eastern European Electric Company (EEEC), and were made in accordance with a decision by the Bulgarian competition regulator, according to the filings.
Last month, Eurohold's Netherlands-based subsidiary offered to pay 300.29 levs per share in Electrodistribution Grid West, in which it had raised its ownership to 98.93% in late March. EEEC offered to pay 28,158.30 levs per share of Electrohold Sales, in which it also hiked its stake in March, to 96.92%.
EEEC is seeking to buy 154 shares in Electrohold Sales, representing 3.08% of the company's share capital, as well as 20,581 shares in Electrodistribution Grid West which represent 1.07% voting rights.
Earlier this month, the Commission for Protection of Competition (CPC) halted the launch of the tender offers, pointing to inconsistencies in the information presented by the buyer and suggesting that the previous prices were unreasonably low, with no market and regulatory justifications and contrary to current market trends for electricity price increases.
Shares in Electrohold Sales and Electrodistribution Grid West closed flat in their most recent trading session on Wednesday, at 29,600 levs and 290 levs, respectively.
Last year, Eurohold Bulgaria completed the acquisition of the local assets of CEZ for 335 million euro ($380.6 million). Through Eastern European Electric Company, it acquired 67% interest in electricity distributor CEZ Distribution Bulgaria and power supplier CEZ Electro Bulgaria, as well as 100% of the shares of licensed electricity trader CEZ Trade Bulgaria, IT services company CEZ ICT Bulgaria, solar park Free Energy Project Oreshetz, biomass-fired power plant Bara Group, and CEZ Bulgaria, the coordinator of CEZ Group’s units in Bulgaria.
Last month, the shareholders of CEZ Distribution Bulgaria gave the green light to the change of the company's name to Electrodistribution Grid West, while power supplier CEZ Electro Bulgaria's shareholders approved a change in the firm's name to Electrohold Sales.
(1 euro = 1.95583 levs)