Eurohold Bulgaria AD

M&A Activity • Aug 4, 2021

NEWS RELEASE

Eurohold's Energy Subholding Made Public Tender Offers to the Minority Shareholders of CEZ Distribution and CEZ Electro

Eastern European Electric Company proposes nearly BGN 219.2 million for the remaining 33% of the shares of the two companies

Sofia, 4 August 2021 - Eastern European Electric Company B. V. (EEEC), the energy subholding of Еurohold Bulgaria AD, which is the direct owner of the units that the public holding acquired from CEZ Group in Bulgaria, has launched public tender offers to buy the stakes of the minority shareholders in CEZ Distribution Bulgaria AD and CEZ Electro Bulgaria AD, both of them listed on the Bulgarian Stock Exchange (BSE).

ЕЕЕC acquired 67% of the capital of the two companies and according to the Public Offering of Securities Act it is obliged to make public offer tenders to the shareholders of the remaining 33% of the capital.

ЕЕЕC offers to the minority shareholders in CEZ Distribution BGN 276.88 per share or a total of almost BGN 176.2 million for a little over 636 000 shares, each with a par value of BGN 1.00. The offer to the minority shareholders in CEZ Electro is BGN 26.07 thousand per share or a total of around BGN 43.02 million for 1650 shares, each with a par value of BGN 10.00. In this way Еurohold's energy subholding is ready to pay approximately BGN 219.2 million (EUR 112.09 million) for all remaining shares in the two companies.

More information for EEEC's public tender offers is published on the websites of CEZ Distribution Bulgaria (here) and CEZ Electro Bulgaria (here). The Financial Supervision Commission has not yet expressed its opinion on the public tender offers.

Еurohold Bulgaria AD, the largest Bulgarian public holding and a leading independent financial and insurance group in Southeastern Europe, has officially completed the acquisition of seven subsidiaries of Czech energy group CEZ in Bulgaria for EUR 335 million.

As a result of the transaction, Еurohold, through its wholly owned subsidiary Eastern European Electric company (EEEC), has acquired a 67% interest in CEZ Distribution Bulgaria - the largest distributor of electricity in Bulgaria (with 40% market share) and CEZ Electro Bulgaria – the largest power supplier in Bulgaria, in addition to 100% of the capital of CEZ Trade Bulgaria – the largest electricity trader in Bulgaria. Other assets acquired included 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. Upon acquisition and integration of CEZ Group's assets, Еurohold will more than double the number of customers it serves to over 7 million, and

employ more than 6,000 people in 11 countries in Central, East and Southeast Europe (CESEE) and the former Soviet Union (FSU).

Eurohold Bulgaria AD

Eurohold Bulgaria is a leading independent business group in the CEE/SEE/FSU region, operating in the field of electricity distribution and supply, insurance, leasing, car sales, investment services and asset management. Eurohold is listed on the BSE and the WSE. Eurohold owns Euroins Insurance Group (EIG), one of the largest independent insurance groups in the CEE/SEE/FSU region, which operates in 11 countries and has subsidiaries in Bulgaria, Romania, the Republic of North Macedonia, Ukraine, Georgia, Russia and Belarus. EIG also operates in Greece and Poland, and has niche insurance operations in Spain and Italy. Currently the insurance group has more than 4 million clients and over 3,000 employees. Eurohold has recently acquired the subsidiaries of Czech energy group CEZ in Bulgaria through its fullyowned subholding Eastern European Electric Company, which now has more than 3,000 employees and provides services to nearly 3 million customers nationwide.

www.eurohold.bg www.eig.bg