Eurohold raises 80.5 million euros by issuing new shares on the stock exchange
July 8, 2021-Eurohold, the largest holding company in Bulgaria, the owner of Euroins Romania and one of the main independent financial and insurance groups in South-East Europe, has raised EUR 80.5 million (BGN 157 million) by issuing new shares on the Stock Exchange Bulgarian Stocks (BSE). The new share issue took place between June 9 and July 7, 2021 and attracted strong interest from international and local investors, who subscribed and paid for 63 million new shares. With the issuance of the new shares, Eurohold raised 24 percent more funds than needed to validate the IPO (65 million EUR) for the acquisition of CEZ Group subsidiaries in Bulgaria. Thus, Eurohold will increase its capital to 260.5 million shares, and the market value of the holding will reach EUR 332 million (BGN 650 million).
Eurohold offered for subscription a maximum of 79 million new ordinary shares – with a value of BGN 1 and BGN 2.50. Investors subscribed and paid for a total of 63 million shares, nearly 80% of the planned offering. Starcom Holding, the majority shareholder of Eurohold, subscribed and paid for approximately 47 million new shares and will remain the holding’s controlling shareholder, holding a stake of more than 50% in the company. A major US asset manager has acquired a 9% stake in Eurohold and will become the company’s third largest shareholder after Starcom and KJK.
Bulgarian investment intermediary Euro-Finance AD was the lead manager of the public offering. Renaissance Capital a.k.aţmentionedtas sole financial advisor of Eurohold.
The generated revenue will be used to finance the acquisition of the subsidiaries of CEZ Group Bulgaria – the most important electricity distribution, supply and trading company in Bulgaria, but also for investments in the further development of the group’s two main businesses – energy and insurance.
“We will support the investment program in the energy sector and focus on improving the holding’s profitability and expanding our insurance business line,” said Kiril Boshov, chairman of Eurohold’s board of directors.
Completion of the acquisition of CEZ Group subsidiaries in Bulgaria is forecast for the end of July 2021. The transaction will be financed by JP Morgan.
At the beginning of this year, Eurohold received the final approvals for the takeover of seven subsidiaries of the CEZ group in Bulgaria, including 67% of the largest electricity company – CEZ Distribution Bulgaria and the largest electricity supplier – CEZ Electro Bulgaria, respectively 100% from the shares of the largest licensed electricity trader in Bulgaria – CEZ Trade Bulgaria. CEZ is the largest supplier and distributor of electricity in Bulgaria, serving almost 3 million customers. In 2019, CEZ Bulgaria recorded revenues and total assets of EUR 700 million (BGN 1.4 billion). The company has more than 3000 employees in Bulgaria.
Eurohold Bulgaria is an independent business group, a leader in the CEE / EEA / CIS region and the largest public holding company in Bulgaria – in terms of revenue. It operates in insurance, leasing, car sales, asset management and investment services. Eurohold listed on BVB and WSE. It owns Euroins Insurance Group (EIG), one of the largest independent insurance groups in the CEE / EEA / CIS region, operating in 11 countries and having subsidiaries in Bulgaria, Romania, North Macedonia, Ukraine, Georgia, Russia and Belarus.eurohold.bgeig.bg
