CEZ closes sale of Bulgarian assets to Eurohold (updated)

EuroHold Bulgaria AD

27/07/2021 16:57

(Adds Eurohold comment)
    PRAGUE/SOFIA, July 27 (Reuters) - Czech utility CEZ
 CEZP.PR  has completed the sale of seven Bulgarian companies to
financial group Eurohold  EUBG.BB  for 335 million euros ($396
million), it said on Tuesday, as the company continues 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 to boost its
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, which comes after 17 years
in the country. It was exiting with a positive cash balance of
over 1 billion crowns ($46 million), it said.
    CEZ has made a claim against the Bulgarian state, saying it
did not comply with obligations in a privatisation agreement.
Bulgaria disputes this. 
    "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."
    CEZ agreed to the sale to financial and insurance group 
Eurohold in 2019 but faced regulatory hurdles.
    Eurohold estimated the total value of the deal at 500
million euros, including a mandatory tender offer to minority
shareholders in two of the acquired companies.
    Eurohold, which takes over an energy distributor that
provides electricity to over two million clients in northwestern
Bulgaria among other assets, raised part of the financing for
the deal in a capital increase this month.  urn:newsml:reuters.com:*:nL2N2OJ1KR
    On Tuesday, it said it had arranged a strategic structured
investment by Metric Capital Partners as well as a senior
syndicated loan facility, structured by JP Morgan and subscribed
by commercial and development banks. 
    ($1 = 21.7600 Czech crowns)
    ($1 = 0.8464 euros)

 (Reporting by Jason Hovet, additional reporting by Tsvetelia
Tsolova in Sofia  Editing by Mike Harrison and Mark Potter)
 ((jason.hovet@thomsonreuters.com; +420 234 721 613;))