Energo-Pro's Bulgarian unit gets bondholders nod to guarantee Czech parent's debt

Energo-Pro's Bulgarian unit gets bondholders nod to guarantee Czech parent's debt Author: Nick Page. License: CC BY 2.0

SOFIA (Bulgaria), September 28 (SeeNews) - Bulgarian power distribution company Energo-Pro Varna [BUL:8EVA] said its bondholders have approved a proposal that the company become a guarantor for liabilities of up to 350 million euro ($411.9 million) of its Czech parent, Energo-Pro.

The bondholders approved the proposal at a meeting held on October 12, Energo-Pro Varna said in a bourse filing on Thursday.

Last month, Czech media reported Energo-Pro has increased its offer for the acquisition of assets of its Czech peer CEZ Group in Bulgaria to over 300 million euro.

"Energo-Pro has responded to the request of CEZ to adjust its offer for the acquisition of its assets in Bulgaria, and today it has submitted an improved offer that meets the required parameters," Czech daily Hospodarske Noviny quoted Energo-Pro spokesperson Hana Hikelova as saying.

Energo-Pro Varna is active in electricity distribution in northeastern Bulgaria, where it is the sole license holder, as well as in selling electricity to more than 1.2 million household and industrial consumers.

CEZ Group told SeeNews last month that it was still considering all options related to the sale of its Bulgarian assets.

“Both options – selling the bulk of our assets or selling only a part – are still viable,” CEZ Group told SeeNews in an e-mailed statement.

The assets of CEZ Group in Bulgaria comprise CEZ Distribution Bulgaria, the public supplier of electricity and a licensed trader CEZ Electro Bulgaria, licensed electricity trader CEZ Trade Bulgaria and Varna thermal power plant. The operations of those companies are managed and coordinated by CEZ Bulgaria.

(1 euro = 1.95583 levs)

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