Eurohold enters in a procedure of capital increase

The company estimates the total cost of acquiring CEZ's assets in Bulgaria at 490 million euros

Industry / Bulgaria
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The Bulgarian company Eurohold announced that it is entering a procedure to increase the capital for financial support of the acquisition of the Bulgarian assets of the Czech company CEZ Group. On June 9, Eurohold will start trading the rights on the stock exchange, and the procedure will continue until June 15. The start date for the transfer of rights is also June 9, and the end date is June 17, BNR reports.

The financial and insurance group plans to sell a little over 79 million new shares and raise up to BGN 197 million and 525.6 thousand.

At a nominal value of BGN 1 per share, the company has set an issue value of BGN 2.5 per share, corresponding to the current market price and will consider that the capital increase is successful only if at least 31,604,096 units new shares issue are subscribed and paid, or 40% of new shares.

Eurohold will use the proceeds, along with bank loans, to complete its 335m-euro deal to buy CEZ's Bulgarian assets by the end of June.

The company has commissioned JP Morgan Bank to structure debt financing.

Eurohold estimates the total cost of the acquisition at 490m euros, including the funds needed to bid for minority shareholders in two of CEZ's majority companies and to cover part of their debts.

If the subscription is successful (the deadline for this is June 25), trading in the new shares must start on the Bulgarian Stock Exchange.

Eurohold also said it plans to issue the issue on the Warsaw Stock Exchange in late September.

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