The transaction is the biggest deal in the Bulgarian energy sector in the last 17 years and one of the major energy deals in the CEE region.
As a result of the transaction, Еurohold, through its wholly owned subsidiary Eastern European Electric Company, has acquired a 67% interest in CEZ Distribution Bulgaria - the largest distributor of electricity in Bulgaria (with 40% market share) and CEZ Electro Bulgaria – the largest power supplier in Bulgaria, in addition to 100% of the capital of CEZ Trade Bulgaria – the largest electricity trader in Bulgaria. Other assets acquired included IT services company CEZ ICT Bulgaria, solar park Free Energy Project Oreshetz, biomass-fired power plant Bara Group, and CEZ Bulgaria, the coordinator of CEZ Group’s units in Bulgaria.
The successful closing was preceded by a lengthy and complicated process of obtaining the necessary regulatory approvals by the Bulgarian regulators. As a first step, the deal was finally greenlighted in November 2020 by the Commission for the Protection of Competition following an extensive and extremely complicated procedure before the regulator. Then, in January 2021, the Energy and Water Regulatory Commission has authorized the transaction whereas the procedure is the first and inaugural under art. 21, para. 1, item 23a of the Energy Act, pursuant to which the regulator authorizes transactions for disposal of shares representing more than 20% of the capital of companies, carrying out licensing activities for transmission and distribution of electricity, heat or natural gas, with a view to ensuring security of supply, protection of national security and public order.
The mere Closing took place on 27th July, 2021 simultaneously in Prague and in Sofia, in the offices of PM&P, where the documents have been signed by Vladimir Penkov on behalf of CEZ and Radoslava Peneva on behalf of Eurohold.
PM&P’s team included Senior Partner and Chairman Vladimir Penkov, Managing Partner Nikolay Cvetanov, who personally supervised the whole process on the sell side, Partner Ivan Markov, Senior Associates Smilena Hrusanova and Nikolay Voynov, and Associates Boris Lazarov, Asen Apostolov and Ivo Nickolchev.
