May 5 (SeeNews) - Financial and insurance group Eurohold Bulgaria [BUL:EUBG] said that the Financial Supervision Commission (FSC) approved its capital increase prospectus on April 29.
The FSC gave the green light to the holding to raise up to 100 million euro ($119.9 million) through a new share issue on the Bulgarian Stock Exchange (BSE), Eurohold Bulgaria said in a bourse filing last week.
In order to do so, the company will offer for subscription 79 million new ordinary shares at an issue price of 2.5 levs each. The raised funds will be used to finance the acquisition of the Bulgarian subsidiaries of Czech energy group CEZ and to invest in the development of the Eurohold's two main businesses - energy and insurance, the group said.
Earlier this year, Eurohold Bulgaria received the last needed regulatory approval for its deal to acquire the local assets of CEZ. In June 2019, Eurohold signed an agreement to acquire those assets for 335 million euro.
Last month, Eurohold Bulgaria mandated J.P. Morgan AG to act as its lead and exclusive arranger for structuring the debt financing of the deal with CEZ. "This is a further step towards the completion of the acquisition of CEZ Group’s subsidiaries in Bulgaria by the end of the first half of the year," Vasil Stefanov, head of mergers and acquisitions at Eurohold, said back then.
Eurohold Bulgaria's shares closed unchanged at 2.50 levs ($1.53/1.28 euro) on the BSE on Wednesday.
(1 euro = 1.95583 levs)