Eurohold accepts the decision of Bulgaria’s competition authority as a positive assessment for the financial strength of the holding
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.