Eurohold, CEZ Distribution back rise of Sofia stock indices following deal approval

Earlier on Tuesday, Eurohold said that it has received approval from the Energy and Water Regulatory Commission to acquire the assets of Czech energy group CEZ in Bulgaria, including majority stakes in CEZ Distribution Bulgaria and CEZ Electro Bulgaria [BUL:1CZ].

"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.

Eurohold Bulgaria, which is a member of three of the four BSE indices, saw its share price jump by 12.82%, while CEZ Distribution Bulgaria, which is a member of the BGBX40 and the BGTR30 indices, added 14.84%.

CEZ Electro Bulgaria, which is not a member of the four BSE indices, was the top gainer on the stock exchange on Tuesday, adding 30.43% to its share price.

The blue-chip SOFIX index grew by 1.40% to 476.94 points, as Eurohold was followed by Advance Terrafund REIT [BUL:6A6] and drug maker Sopharma [BUL:3JR], which gained 1.58% and 1.23%, respectively.

The wider BGBX40 index, which tracks the 40 most traded shares on the Sofia bourse, increased 2.17% to 107.85 points, while the BGTR30 index, in which companies with a free float of at least 10% have equal weight, advanced 0.83% to 519.74 points.

The BGREIT, which tracks seven real estate investment trusts, broke its closing value record for a fifth consecutive trading session. The BGREIT ended 0.34% higher at 140.19 points, backed by Advance Terrafund REIT.

Total daily regulated market turnover amounted to 1.9 million levs ($1.2 million/1 million euro).

(1 euro = 1.95583 levs)