Eurohold Bulgaria launches squeeze-out at two former CEZ units

The offers, which will kick off on Monday, both have a deadline for acceptance of September 7, EEEC said in two bourse filings.

Bulgaria's financial regulator said on Thursday it gave the green light to EEEC to acquire the remaining 0.75% in Electrodistribution Grid West (EGW) and 2.34% in Electrohold Sales.

Under the offer for EGW, EEEC will pay 303.55 levs ($155.40/155.20 euro) per share to purchase the remaining 14,416 shares in the power distribution company. The offer is slightly higher than the 302.56 levs per share that the Netherlands-based division paid in June to increase its ownership in EGW by 6,165 shares.

Under the second offer, EEEC proposed to pay 29,161.02 levs, up from 28,433.51 levs in June, for the remaining 117 shares in Electrohold Sales.

EEEC initially offered to pay 300.29 levs per share for the remaining interest in EGW, in which it had raised its ownership to 98.93% in late March, and 28,158.30 levs per share for the remaining minority interest in Electrohold Sales, in which it also increased its stake in March, to 96.92%.

The financial regulator, however, halted the buyout offers, in part due to inadequacies in pricing, which led Eurohold's subsidiary to sweeten both its proposals.

In May, Electrohold Bulgaria, the electricity supply and distribution arm of Eurohold, said that it will seek opportunities for expansion in neighbouring countries and will also aim for a leadership position in the sector in the wider Central and Eastern Europe region.

As at 1251 CEST on Friday, shares in EGW traded flat at 294.00 levs on the Bulgarian Stock Exchange. Shares in Electrohold Sales and Eurohold did not trade by that time, having closed flat at 29,600.00 levs and 2.10 levs respectively on Thursday.

(1 euro = 1.95583 levs)