CEZ A.S.

M&A Activity • Jun 21, 2019

CEZ Group has agreed to sell its Bulgarian assets to Eurohold for EUR 335 million

Today, CEZ Group has signed a contract with Eurohold for the sale of its Bulgarian assets. The selling price is EUR 335 million. The settlement of the transaction is subject to regulatory approvals of the Bulgarian antimonopoly office and the Bulgarian energy regulator. The international arbitration launched by CEZ against the Republic of Bulgaria in July 2016 is not affected by the sale and will by continued.

CEZ Group signed today an agreement with Eurohold AD, a leading independent business group operating in the CEE/SEE/CIS region and the largest Bulgaria-based publicly-listed holding company, to sell CEZ Group's assets in Bulgaria.

Eurohold plans to finance the acquisition and refinance the existing CEZ Bulgaria's debt, as the case may be, partially through own funds and additional funding will be provided by leading international banks.

The sale includes all seven of CEZ Bulgarian companies (CEZ Bulgaria, CEZ Elektro Bulgaria, CEZ Razpredelenie, CEZ Trade Bulgaria, CEZ ICT Bulgaria, Free Energy Project Oreshets and Bara Group). The transaction is subject to approval by the Bulgarian Commission for the Protection of Competition (KZK) and the Bulgarian Energy and Water Regulatory Commission (KEVR).

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Sofia-based Eurohold Bulgaria AD is a leading independent business group, operating in the CEE/SEE/CIS region and the largest publicly-listed holding company in Bulgaria. Eurohold's subsidiaries operate in the field of insurance, leasing, car sales, asset management and investment services in 12 European countries. The company is listed on the Bulgarian Stock Exchange and the Warsaw Stock Exchange. Eurohold owns Euroins Insurance Group (EIG), operating in 12 European markets, including its own subsidiaries in Bulgaria, Romania, North Macedonia, Ukraine, Georgia, Belorussia and the Czech Republic.