Officially! They approved a spectacular deal for more than 500 million in Bulgaria!

Today’s decision is the latest obstacle to CEZ’s withdrawal from Bulgaria, something the company has been aiming for for years.
The EWRC’s permission was needed after the changes in the law, adopted after CEZ’s attempt to sell its business to Ginka Varbanova, which was met with criticism from political circles.

Initially, the Competition Protection Commission also prohibited Eurohold from acquiring the CEZ business, but the decision was overturned by the Sofia District Administrative Court in July last year.

The value of the deal was announced at 335 million euros.

Eurohold will acquire control over CEZ Group’s business in Bulgaria through its subsidiary and the specially created Eastern European Electricity Company BV (EEEC), the company said.

The transaction includes 67% of the capital of the electricity distribution company CEZ Distribution Bulgaria AD and the public electricity supply company CEZ Electro Bulgaria AD, as well as 100% of the shares of the authorized electricity trader CEZ Trade Bulgaria EAD, the company IT services – CEZ ICT Bulgaria EAD, the Free Energy Project Oreshets photovoltaic park, the company for the production of electricity from biomass – Bara Group, and CEZ Bulgaria EAD, which coordinates and manages the activities of all the companies of the Czech group in the country.

The next steps in completing the deal are the signing of the financing agreements and the transfer of the shares. Financing will be provided through equity and borrowed capital from the world’s leading investment banks.

“Permits from the antitrust authority and the energy regulator allow us to proceed with the financing and finalization of the agreement.

We have the support of global investment banks with extensive experience in this type of transaction, which will provide the necessary borrowed capital. After the acquisition is complete, we will work towards the creation of a strong regional utility company, “said Vasil Stefanov, Head of Acquisitions and Mergers at Eurohold Bulgaria.

At the beginning of the year, CEZ also received approval from the European Commission to sell its business in neighboring Romania. The buyer is Macquarie Infrastructure and Real Assets (MIRA) of Australia, and the deal is valued at around € 1 billion. The sale also needs the approval of the Romanian National Defense Council before it can be completed.