SOFIA (Bulgaria), September 10 (SeeNews) - Financial and insurance group Еurohold Bulgaria [BUL:EUBG] said on Friday that it is at an advanced stage of discussions with the European Bank for Reconstruction and Development (EBRD) over the acquisition of a minority stake in Euroins Insurance Group (EIG), the holding company consolidating Еurohold's insurance operations.
"The investment of EBRD in EIG will be for an amount up to 30 million euro ($35.5 million) and will be carried out through a capital increase of the insurance group. Еurohold will also participate in the capital increase procedure with a further equity capital injection of up to 12 million euro," Eurohold Bulgaria said in an e-mailed statement.
Sofia-headquartered EIG will use the raised funds mainly for the development and growth of the largest insurance entity within the group - Euroins Romania Asigurare Reasigurare, and additionally, to strengthen the holding’s market positions in Southeast Europe.
"The deal has been approved at all corporate levels of the two parties but remains subject to an agreement on and execution of final transaction documents and satisfaction of contractual conditions to closing," Eurohold said.
Earlier this year, Eurohold finalised the acquisition, through its Dutch-based wholly-owned unit Eastern European Electric Company B.V. (EEEC), of 67% interest in power grid operator CEZ Distribution Bulgaria and power supplier CEZ Electro Bulgaria from Czech energy group CEZ, 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, for a total of 335 million euro.
Last month, Eurohold said that it aims to acquire the remaining interest of 33% in CEZ Distribution and CEZ Electro for a total of 219.2 million levs ($132.7 million/112 million euro).
Eurohold's shares closed 0.93% lower at 2.14 levs on the Sofia bourse on Thursday.
($ = 0.844340 euro)