January 19 (SeeNews) - Financial and insurance group Eurohold Bulgaria [BUL:4EH] said on Tuesday that it has received approval from the Energy and Water Regulatory Commission to acquire the assets of Czech energy group CEZ in Bulgaria.
"We got approvals by the Bulgarian antitrust and energy regulators, so we can proceed with the financing and completion of the deal. We have the support of global investment banks with solid experience in providing financing for such deals," Vasil Stefanov, head of mergers and acquisitions at Eurohold Bulgaria, said in a statement.
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Eurohold will finance the acquisition through a combination of equity and borrowed capital.
The deal includes 67% interest in power utility CEZ Distribution Bulgaria [BUL:3CZ] and power supplier CEZ Electro Bulgaria [BUL:1CZ], as well as 100% of the shares of the 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.
Eurohold will acquire CEZ Group's assets in Bulgaria though its wholly-owned unit Eastern European Electric Company.
In June 2019, Eurohold signed an agreement to acquire the assets of CEZ in Bulgaria for 335 million euro ($406 million).
As at 14:40 CET on Tuesday, shares in Eurohold Bulgaria traded 12.82% higher at 2.20 levs on the Bulgarian Stock Exchange. Shares in CEZ Distribution Bulgaria were up 13.28% by the same hour, while CEZ Electro Bulgaria had not yet traded.
($ = 0.8246 euro)