CEZ closes sale of Bulgarian assets to Eurohold

EuroHold Bulgaria AD

27/07/2021 16:10

PRAGUE, July 27 (Reuters) - Czech utility CEZ  CEZP.PR  said
on Tuesday it has completed the sale of seven Bulgarian
companies to financial group Eurohold  EUBG.BB  for 335 million
euros ($395.8 million), a further step in its strategy to
withdraw from some foreign markets.
    CEZ has already exited Romania and has put some Polish plant
assets up for sale. Some of the proceeds from foreign asset
sales have gone in payouts to investors, helping boost the
shares. 
    The company paid its second-highest dividend ever for 2020
earnings.  urn:newsml:reuters.com:*:nL2N2N80L1  urn:newsml:reuters.com:*:nP7N2JB02E
    CEZ said international arbitration with Bulgaria was
continuing despite the market exit, coming after 17 years in the
country. It was exiting with a positive cash balance of over 1
billion crowns ($46 million), it said.
    "CEZ Group leaves Bulgaria with a positive cash balance. The
settlement of the sale has no impact on the international
investment arbitration against the Bulgarian state, which is
independently pending," said board member Tomas Pleskac.
    "The arbitration claim represents additional potential
proceeds for CEZ and its shareholders."
    The arbitration claim stems from CEZ saying Bulgaria did not
comply with obligations in a privatisation agreement.
    CEZ had agreed to the sale to Eurohold in 2019 but faced
regulatory hurdles.
    Eurohold this month raised part of the financing for the
deal in a capital increase.  urn:newsml:reuters.com:*:nL2N2OJ1KR

($1 = 21.7600 Czech crowns)
($1 = 0.8464 euros)

 (Reporting by Jason Hovet; Editing by Mike Harrison)
 ((jason.hovet@thomsonreuters.com; +420 234 721 613;))