Sofia, Oct 24th 2019 – With reference to today’s decision of the Commission for the Protection of Competition (CPC) not to approve the deal for the purchase of the business of Czech energy group CEZ in Bulgaria, Eurohold Bulgaria AD is announcing:
- Eurohold highly appreciates the efforts of the Bulgarian competition authority to execute an in-depth probe into the acquisition for record short time – 10 working days. The holding believes that the decision had been taken after a detailed and careful analysis of all facts and circumstances.
- Eurohold accepts the decision of the CPC as a positive assessment for the financial strength of the holding and as a confirmation for the opportunities of the company to manage scaled-up takeovers. This is one more reason for the holding to continue following its strategy for development.
- The decision of the CPC undoubtedly contributes to the security that every current or future investor in the Bulgarian economy should have the required trust in the Bulgarian regulator and thus should be calm for the predictability of its investment plans.
- As a public company with a lot of international and institutional investors, Eurohold will wait for a decision of the company’s supervisory board for the further steps related to the deal and the development of its investment strategy in the energy sector.
- Eurohold proved that it could structure the deal for the purchase of CEZ Group’s business in Bulgaria successfully and manage the assets of the acquired companies responsibly. An international team of over 100 experts has been working in the project. The funding for the deal has been secured by two global investment banks. Considering the target investment in the acquisition of CEZ Group’s companies, including the price of the deal, the purchase of the minority shares, the repayment of the debt of the acquired companies and the investment strategy for their development, a total amount of around EUR 500 million would have been allocated in Bulgaria according to the holding’s estimates. Additionally, the holding established an energy board, comprised of authoritative Bulgarian and foreign energy experts that developed a strategy. The strategy was presented to experts, analysts and media earlier this month at the headquarters of the holding in Sofia.
Eurohold Bulgaria AD
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 10 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 approximately 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 10 European markets, including own subsidiaries in Bulgaria, Romania, North Macedonia, Ukraine, Georgia and Russia. EIG is also operating in Greece and has niche operations in Spain, Poland and Italy. In March, 2019, EIG agreed to take over 4 insurance companies from Germany-based ERGO in 3 European countries – Romania, the Czech Republic and Belarus.