The Bulgarian insurer Eurohold has had talks with the Czech energy group CEZ in which it has shown interest in its Bulgarian assets, but there is still no decision on whether to participate in the procedure for the purchase of the electricity distribution network in Western Bulgaria, the electricity supplier, the trader, the telecommunication company and two solar projects. If the company takes such an investment decision, and this should happen in the next two to three weeks, it will be announced publicly as Eurohold is listed on the Bulgarian and Warsaw Stock Exchange. Mediapool has learned from its sources after the Czech newspaper Lidove News first announced on Monday that Eurohold is the third candidate in the stuck deal for CEZ's assets in Bulgaria.

The talks between CEZ representatives and Eurohold's Supervisory Board chairman Asen Hristov took place alongside the acquisition by Eurohold Insurance Group of Eurohold of four insurance companies of the German ERGO, one of which is in the Czech Republic.

The Bulgarian insurer officially stated that "following its corporate policy and rules, Eurohold Bulgaria AD does not comment on rumors or speculative information, especially when it concerns third parties." The statement recalls that as a public company, Eurohold, to disclose corporate information, complying with statutory requirements, as it is under the magnifying glass of financial regulators.
  
"Any published speculative unconfirmed information could affect the cost of the holding's shares and harm the interests of shareholders, including minority shareholders, and this could also be considered a violation of the laws governing the operations of public companies. subsidiaries have always publicly announced their acquisitions using all existing media channels and simultaneously informing all stakeholders.If the company and its subsidiaries intend to realize new acquisitions in the future, they will make them public and will promptly inform all stakeholders, "adds the communication by the Holding, which currently operates in the areas of insurance, leasing, car sales, investment and asset management.

In 2018, the holding realized 1.3 billion leva and its assets reached 1.4 billion leva.

CEZ spokesperson Alice Horakova told Mediapool that "CEZ has agreements on confidentiality with all countries interested in our assets in Bulgaria." "Only after receiving binding offers will it be clear how the sale process will continue, and the contract with Inercom remains valid," she said.

However, the contract with the Pazardzhik company of Ginka Varbakova has expired. It was concluded at the end of February 2018 and provided for the deal to receive the approval of the Commission for Protection of Competition (CPC) by the autumn and the payment of promised EUR 362.5 million from Inercom to be made in November. However, the antitrust authority banned the deal and refused to rule on a reassessment of the acquisition after Verbakova's divestment of its solar business, as a problem by the CPC. The Commission has announced that it can not deal with the case until the Supreme Administrative Court has ruled on it after appealing the antimonopoly decision by Inercom and CEZ.

According to Mediapool, "Inercom" in recent months has been focusing on attracting a transaction partner so that it can go through the CPC and also to secure promised funding. Negotiations have been conducted with an Australian and an English fund, but the two partners have attracted a lower estimate of CEZ's assets than the EUR 362.5 million proposed by Verbakov to pay immediately. Their estimates were about 265 million euros, say the message. The reason for this depreciation is the deteriorated financial results of CEZ's main companies in Bulgaria - electricity distribution and electricity supply companies in 2018 compared to their previous 2017 and even 2016 earnings, which were basically as data in the sale of assets of CEZ in Bulgaria.

According to unconfirmed information, Inercom has been negotiating with other potential partners to secure the deal. Mediapool's attempts to contact a representative of the Pazardjik company were unsuccessful.

"India Power", which was ranked second in the highly opaque procedure, had offered EUR 365 million but on a deferred payment and that is why Varbakova was preferred. The Indian energy company, however, has also revalued its assets and has already bid for 272.5m euros.

Horakova did not answer the question if there are specific deadlines in which candidates for Bulgarian assets of CEZ have to submit final bids. In the words of CEZ Deputy Tomas Pleskac, who unveiled the third candidate's candidacy last week to Lidove News, in April it should be clear what is happening with the deal.

"In the coming weeks and months, we will be evaluating the two new bindings I suppose we will get," CEZ representative said.

"On the basis of the proposals in the two offers, we will decide whether to proceed with the signing of new contracts, which will obviously mean terminating the old contract (with Inercom) or terminating the procedure," said Pleskac a few days ago.

The consideration of Inercom's complaint against the CPC is scheduled for mid-May 2019.

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