EUROHOLD Raises EUR 80.5 million via Public Offering of New Shares

8 July 2021 — Daniela GHETU
EUROHOLD Bulgaria AD, one of the leading independent financial and insurance groups in the SEE, raised EUR 80.5 million via a Public Offering of New Shares on the Bulgarian Stock Exchange (BSE).

The new share issue received strong interest from international and local investors, who subscribed and paid up for ca. 63 million of new shares. With the offering EUROHOLD raised ca. 24% more than the funds required (EUR 65 million) for the acquisition of CEZ Group's subsidiaries in Bulgaria and will increase its capital to 260.5 million shares. Upon the registration of the new shares, EUROHOLD's market capitalization at the current stock price will reach ca. EUR 332 million.

EUROHOLD offered for subscription a maximum of ca. 79 million new ordinary shares - with a par value of BGN 1 and an issue price of BGN 2.50 each. Investors subscribed and paid for 63 million shares altogether, almost 80% of the planned offering. STARCOM Holding, EUROHOLD's majority shareholder, subscribed and paid for ca. 47 million new shares and will remain a controlling shareholder, holding more than 50% interest in the company. A leading US asset manager acquired a 9% stake in EUROHOLD and will become the third largest shareholder in the company after STARCOM and KJK, further strengthening EUROHOLD's shareholder base and corporate governance practices.

The Bulgarian investment intermediary Euro-Finance AD was the Lead Manager of the public offering. Renaissance Capital acted as a Sole Financial Adviser to EUROHOLD with respect to the offering.

The proceeds of the offering will be used to finance the acquisition of CEZ Group's subsidiaries, representing leading electricity distribution, supply and trade businesses in Bulgaria, as well as for investment in further development of the group's two main businesses - energy and insurance. "We will support the investment program of our new subsidiaries in the energy sector and we will focus on improving the holding's profitability and expanding our insurance business line", said Kiril BOSHOV, chairman of EUROHOLD's management board.

The equity proceeds together with debt financing will be used by EUROHOLD to finance the next stage of the acquisition of CEZ Group's subsidiaries, which is expected to be completed by the end of July 2021. The debt financing is being arranged by J.P. Morgan with a syndicated loan, which has been confirmed by large international participating banks.

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