June 25 (SeeNews) - Bulgaria's financial regulator said that it is continuing its probe into the financial state of Eurohold Bulgaria [BUL:4EH] and three of its insurance subsidiaries in relation to the group's acquisition of the local assets of Czech energy group CEZ, and expects to deliver the final results by June 28.
Eurohold Bulgaria will be expected to demonstrate not only experience in the energy field, but also serious financial resources needed both for the acquisition itself and for maintaining adequate power supply infrastructure, the regulator said in a statement on Monday.
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The results of the check will be presented to the chief prosecutor's office and the state agency for national security.
Last week, Eurohold Bulgaria said that it has signed an agreement to acquire the assets of CEZ in Bulgaria for 335 million euro ($381.8 million), adding that it will finance the acquisition through both equity and debt financing.
According to its latest consolidated financial statement, Eurohold Bulgaria had 68 million levs ($39.6 million/34.8 million euro) of cash and cash equivalents at the end of March. The company had a positive net cash flow of some 18.5 million levs in the first quarter.
The group is also seeking to raise up to 154 million levs through a capital increase. However, the Financial Supervision Commission has already refused to approve the company's capital increase prospectus twice, asking Eurohold to present further information and documents on both occasions.
Eurohold Bulgaria shares did not trade on the Bulgarian Stock Exchange on Monday.
CEZ Distribution Bulgaria [BUL:3CZ] shares closed unchanged from their previous closing price of 240 levs, while the other BSE-listed CEZ unit - CEZ Electro Bulgaria [BUL:1CZ] did not trade on Monday.
($ = 0.8775 euro)