SOFIA (Bulgaria), April 12 (SeeNews) - Financial and insurance group Eurohold Bulgaria said on Monday that its shareholders have endorsed the management's plans for a capital increase through a new share issue.
Eurohold Bulgaria is planning to offer for subscription 79 million new shares at an issue price of 2.5 levs each, in order to increase its capital to some 276.5 million levs ($168.3 million/141.4 million euro), the company said in a bourse filing.
The capital hike will be considered successful if at least 40% of the offered shares are subscribed and fully paid for.
Local company Euro-Finance will act as an investment advisor in the capital increase procedure, Eurohold Bulgaria said.
Eurohold Bulgaria's capital currently amounts to 197.5 million levs, divided into the same number of shares.
"The raised funds will be used to finance the acquisition of CEZ Group’s subsidiaries in Bulgaria and to invest in the development of the group's two main businesses – energy
and insurance," Vasil Stefanov, head of mergers and acquisitions at Eurohold, said last month.
Earlier this year, Eurohold received the last needed regulatory approval for its deal to acquire the local assets of Czech energy group CEZ. In June 2019, Eurohold signed an agreement to acquire those assets for 335 million euro.
As at 12:30 CET on Monday, the shares of Eurohold Bulgaria traded flat at 2.50 levs on the floor of the Bulgarian Stock Exchange (BSE).