October 21 (SeeNews) - Bulgarian fuel and building materials retailer Toplivo [BUL:3TV] said it plans to acquire 100% of Synergon Petroleum, a fully-owned unit of Toplivo's majoriy-owner Synergon Holding, and then hike its capital.
If the proposed deal gets the approval of Toplivo's shareholders, Toplivo will acquire the 110,000 Synergon Petroleum shares for a total amount of 1.47 million levs ($853,000/751,500 euro), the company said in a bourse filing on Tuesday.
You can subscribe to our M&A newsletter here
Toplivo's shareholders will also discuss a proposal to increase Synergon Petroleum's capital by 20 million levs from 11 million levs at present over the next two years.
Synergon Holding was set up in 1996 as a privatisation fund under Bulgaria's voucher privatisation programme. The fund was transformed into a holding structure the following year. It has more than 25 subsidiaries and affiliated companies operating in various sectors of the Bulgarian economy.
Synergon Holding holds a majority stake of 73.42% in Toplivo.
Toplivo's shares closed at 4.100 levs, up 5.94% on the Bulgarian Stock Exchange on Wednesday.
(1 euro = 1.95583 levs)