Bulgaria's Eurohold opens subscription for capital increase

EuroHold Bulgaria AD

02/06/2021 11:03

SOFIA, June 2 (Reuters) - Bulgaria's Eurohold  EUBG.BB  said
on Wednesday it would open the subscription for new shares and
trading of rights on June 9 for a fundraising to help finance
the acquisition of the Bulgarian assets of Czech utility CEZ
 CEZP.PR .
    Financial and insurance group Eurohold plans to sell 79
million new shares and raise up to 197.5 million levs ($122.9
million).  urn:newsml:reuters.com:*:nL2N2L00I2
    The company has set the price at 2.5 levs per share,
matching the current market price and will consider the issue a
success if as few as 40% of the new shares are sold. 
    Eurohold will use the proceeds, along with banking loans, to
complete its 335 million euro ($408 million) deal to buy CEZ's
Bulgarian assets by the end of June. It has mandated JP Morgan
to structure the debt financing. 
    It has estimated the total cost of the acquisition at 490
million euros, including funds needed for a tender offer to
minority shareholders in two of CEZ's majority-owned companies
and for covering some of their debts.
    If the subscription, which will run until June 25, is
successful, trading in the new shares should start on the
Bulgarian Stock Exchange. Eurohold has said it also plans to
list the issue for trading on the Warsaw Stock Exchange at the
end of September.    
    Bulgaria's Starkom Holding is Eurohold's majority owner with
a 50.08% stake and private financial fund KJK has a 14.2%
holding. About 28% of the stock is floated.
    ($1 = 1.6065 leva)
    ($1 = 0.8216 euros)

 (Reporting by Tsvetelia Tsolova
Editing by Mark Potter)
 ((tsvetelia.tsolova@thomsonreuters.com; +359-888-311-435;))