Eurohold Bulgaria AD

M&A Activity • Apr 1, 2019

NEWS RELEASE

Eurohold submitted an individual offer to acquire CEZ Group's assets in Bulgaria

The deal will be financed with own funds and the support of Western European banks

Sofia, 1st April 2019 - After an in-depth research and analysis on the financial performance of the Bulgarian units of CEZ Group, the Czech power utility, Eurohold Bulgaria AD, a leading independent business group operating in the CEE/SEE/CIS region and the largest Bulgaria-based publicly-listed holding company, submitted today a binding offer to acquire the assets of CEZ Group in Bulgaria.

Eurohold is participating in the procedure individually and is not in partnership with another candidate in the tender.

Eurohold will finance the transaction through own funds and additional funding to be extended by Western European banks.

The intention to acquire CEZ Group's assets in Bulgaria is part of Sofia-based holding company's long-term strategy to penetrate in new regulated business segments that provide large opportunities for growth. Simultaneously with the acquisition of CEZ Group's assets in Bulgaria, Eurohold is analysing the opportunity to divest part of its assets outside the insurance business in order to focus on the segments with the highest potential.

Eurohold plans to increase its share capital by c. 80 million new shares upon which it expects to raise up EUR 80 million. The capital increase has to be approved by the company's shareholders at an extraordinary general meeting to be held on April 22. Eurohold's management board has already received an assurance and support of the holding's main shareholders for the capital hike.

Until the selection of a buyer for CEZ Group's assets in Bulgaria, Eurohold Bulgaria AD cannot disclose more details on the issue as they are in the moment confidential information which can jeopardise the bidding process and impact negatively the interests of the holding's shareholders.

With reference to its corporate policy, the holding company will not comment on rumors or speculations on the market, especially when third parties are concerned. Eurohold is a publicly-listed company on the Bulgarian Stock Exchange and Warsaw Stock Exchange and being such it complies strictly with the law rules and guidelines for disclosing and dissemination of corporate information. In case of sensible information related with the transaction for CEZ Group's assets in Bulgaria which concerns its shareholders and the other stakeholders, the company will inform all interested parties in a timely manner.

Eurohold Bulgaria AD

Sofia-based Eurohold Bulgaria AD is the largest publicly-listed holding company in Bulgaria and a leading independent business group, operating in the CEE/SEE/CIS region. Eurohold's subsidiaries operate in the field of insurance, leasing, car sales, asset management and investment services in 11 European countries. The company is listed on the Bulgarian Stock Exchange and the Warsaw Stock Exchange. The group has over 2.5 million clients and over 3000 employees. As of 2018, Eurohold's consolidated revenues amounted to BGN 1.3 billion, its operating profit reached BGN 52.3 million and its consolidated assets totalled BGN 1.4 billion. For the last 20 years the holding company has completed 16 successful acquisitions of companies in different business segments in Central and Eastern Europe in transactions with leading corporations in Europe. Eurohold owns Euroins Insurance Group (EIG), one of the largest independent insurance groups in the CEE/SEE/CIS region, operating in 11 European markets, including own subsidiaries in Bulgaria, Romania, North Macedonia, Ukraine, Georgia, Belarussia and the Czech Republic. www.eurohold.bg www.eig.bg