Agreement signed for EBRD to become shareholder of Euroins

10 September 2021 — Daniela GHETU
European Bank for Reconstruction and Development (EBRD) and Eurohold, owner of Euroins Insurance Group - a regional player operating on 13 CEE and CIS countries, have signed an agreement by which EBRD aims to take over a minority stake in Euroins insurance operations.

The deal has been approved at all corporate levels of the two parties but remains subject to an agreement on and execution of final transaction documents and satisfaction of contractual conditions to closing. The investment of European Bank for Reconstruction and Development inEuroins will be for an amount up to EUR 30 million and will be carried out through a capital increase of the insurance group. urohold, owner of Euroins, will also participate in the capital increase procedure with a further equity capital injection of up to EUR 12 million.

Euroins Insurance Group will use the raised funds predominantly for the development and growth of the largest insurance entity within the group - Euroins Romania Asigurare Reasigurare SA, and additionally, to strengthen the holding's market positions in Southeast Europe.

"In recent months, Euroins Romania has gone through a radical process of change, reassessment of risks and improvement of the products and services we offer, repositioning on the insurance market. EBRD's presence in the Euroins shareholding indicates that we are on the right track, proving that we are a solid company, and we are a stable partner, both for customers, business partners and authorities. It is only a few months since I took over the mandate of general manager of Euroins Romania, and the changes do not stop here. We will launch new products, we have a different approach to customers, we continue to invest and grow on the non-MTPL market, because today Euroins is a dynamic, competitive company, that has so much to offer. Change is not easy, but the presence of a partner such as the European Bank for Reconstruction and Development is a positive signal for the entire Romanian industry", stated Tanja Blatnik, CEO of Euroins Romania.

Besides EBRD investment, shareholders of Euroins Romania have already announced a EUR 24.3 million capital increase to be voted at an extraordinary general meeting on 15 September 2021. The proposed capital increase comes on top of two other recent successive capital increases worth over EUR 25.5 million and along with a further capital injection of EUR 8.1 million to be granted to Euroins Romania by the parent company through a subordinated debt. This would result in a total EUR 57.8 million contribution of the main shareholder to Euroins Romania's capital for a period of one year.

The European Bank for Reconstruction and Development (EBRD) has also co-financedurohold's acquisition of CEZ Group's business in Bulgaria. On July 28th, Eurohold - the largest Bulgarian holding and a leading independent financial and insurance group in Southeast Europe, has officially completed the acquisition of the subsidiaries of Czech energy group CEZ in Bulgaria for EUR 335 million, through its wholly-owned unit Eastern European Electric Company (EEEC).

As a result of the transaction, which had previously been approved by all relevant local authorities,urohold has taken over 67% interest in the largest distributor of electricity in Bulgaria - CEZ Distribution Bulgaria (40% market share), and the biggest power supplier - CEZ Electro Bulgaria, as well as 100% of the capital of the largest licensed electricity trader - CEZ Trade Bulgaria. The group has also acquired IT services company CEZ ICT Bulgaria, solar park Free Energy Project Oreshetz, biomass-fired power plant Bara Group, and CEZ Bulgaria that coordinates and manages all CEZ Group's units in Bulgaria.

By acquiring and integrating CEZ Group's assets, Eurohold will more than double the number of customers it serves to over 7 million, and employ more than 6,000 people in 11 countries in Central, East and Southeast Europe (CESEE) and the former Soviet Union (FSU). The Bulgarian subsidiaries of CEZ Group have more than 3,000 employees and provide services to nearly 3 million customers.

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