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Regulator OKs Eurohold Bulgaria unit's buyout bids for CEZ Distribution, CEZ Electro

Regulator OKs Eurohold Bulgaria unit's buyout bids for CEZ Distribution, CEZ Electro Power in California. Author: Jeff Turner. License: Creative Commons, Attribution 2.0 Generic.

SOFIA (Bulgaria), October 12 (SeeNews) - Financial and energy group Eurohold Bulgaria [BUL:EUBG] said on Tuesday that the financial regulator approved the revised buyout bids by Dutch-based Eastern European Electric Company B.V. (EEEC), a wholly-owned unit of the group, for stakes of 33% each in Sofia-based CEZ Distribution [BUL:CEZD] and CEZ Electro [BUL:CEZE].

EEEC will acquire 636,240 shares in the capital of CEZ Distribution for a total of 185.2 million levs ($109.4 million/94.7 million euro) as well as 1,650 CEZ Electro shares for 44.4 million levs, Eurohold Bulgaria said in a statement.

Eurohold Bulgaria also said that EEEC expects to complete the acquisition of the respective stakes in the two companies by the end of November.

In August, Bulgaria's financial regulator temporarily suspended the publication of buyout bids by EEEC for the 33% stakes in CEZ Distribution and CEZ Electro.

Also in August, Eurohold Bulgaria said that it aims to acquire the remaining 33% shareholding interest in power grid operator CEZ Distribution and 33% in power supplier CEZ Electro it does not already own for a total of 219.2 million levs. Eurohold made the public tender offers to the minority shareholders of the two companies through EEEC, which is the direct owner of the units that the holding company acquired from Czech energy group CEZ earlier this year.

In July, Eurohold finalised the acquisition, through EEEC, of 67% interest in CEZ Distribution Bulgaria and CEZ Electro Bulgaria from Czech energy group CEZ, as well as 100% of the shares of 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, the coordinator of CEZ Group’s units in Bulgaria, for a total of 335 million euro ($387.0 million)

Under the Public Offering of Securities Act, Eurohold has been obliged to make public tender offers to the minority shareholders of CEZ Distribution Bulgaria and CEZ Electro Bulgaria.

As at 12:45 CET on Tuesday, shares in Eurohold Bulgaria traded flat at a price of 2.06 levs on the floor of the Sofia bourse. By the same hours, CEZ Distribution shares traded 0.69% lower at 286 levs, while shares in CEZ Electro changed hands flat at a price of 30,000 levs.

(1 euro = 1.95583 levs)

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