Eurohold extends a tender offer to minority shareholders of CEZ Distribution at BGN 276.88 per share (NEGATIVE)

CEZ Distribution announced that its majority owner, Eastern European Electric Company, the 100% subsidiary of Eurohold (EUBG), extends a mandatory tender offer to the minority shareholders. The price is BGN 276.88, which according to the announcement is the 6-months weighted average price. The tender offer is aimed at 33% stake (636 240 shares). Note that according to local legislation the minimum price of the buy-out bids would be the highest between the valuation price, the liquidation price, the 6-months weighted-average price and the acquisition price of the majority stake. Valuation price is weighted-average between FCFF (BGN 203.68), NAV (BGN 354.46) and Peers (BGN 224) and is estimated at BGN 238. The acquisition price is announced at BGN 221.54, meaning that EUR 146.3m out of the EUR 335m deal were paid for the stake in the main asset in the group. Recall that on 27 July, Еurohold Bulgaria has officially completed the acquisition of seven subsidiaries of CEZ in Bulgaria for EUR 335m, the holding announced. As a result of the transaction, Еurohold, through its wholly owned subsidiary Eastern European Electric company, has acquired a 67% interest in both CEZ Distribution Bulgaria - the largest distributor of electricity in Bulgaria (with 40% market share) and CEZ Electro Bulgaria – the largest power supplier, in addition to 100% of the capital of CEZ Trade Bulgaria – the largest local electricity trader. Other assets acquired included IT services company CEZ ICT Bulgaria (100% subsidiary of CEZ Distribution), solar park Free Energy Project Oreshetz, the non-operational biomass-fired power plant Bara Group, and CEZ Bulgaria - the coordinator of CEZ Group’s units in Bulgaria.