Еurohold Bulgaria AD informs its shareholders and the public that it is engaged in advanced discussions with European Bank for Reconstruction and Development (EBRD) for the acquisition of a minority stake in Euroins Insurance Group AD (EIG), the holding company consolidating Еurohold's 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 EBRD in EIG will be for an amount up to EUR 30 million and will be carried out through a capital increase of the insurance group. Еurohold 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.
The EBRD has co-financed Еurohold’s acquisition of CEZ Group’s business in Bulgaria.