Expat Capital has acquired 20% of Eurohold Bulgaria
20.06.2011
Today, 20 June 2011, Expat Capital acquired 20% of the shares of Eurohold Bulgaria through a transaction on the Bulgarian Stock Exchange – Sofia. The sellers are the majority shareholder of Eurohold, Starcom Holding, and its related entities. After this transaction, Starcom Holding remains a majority shareholder with over 51% of the company's shares. The deal was executed at a price of BGN 1.215 per share, totalling BGN 26.4 mln (EUR 13.5 mln) for the whole package.
Starcom Holding considers the transaction an important step that will lead to significant positive effects for the development of Eurohold Bulgaria. By attracting Expat Capital as a shareholder, Eurohold Bulgaria will have long-term financial support from all of its larger investors, which is an important prerequisite for the full realisation of the investment programme of the company.
The main reasons for Expat Capital to accomplish this investment are the following:
• Eurohold is one of the few companies in Bulgaria that have a clear and focused business model that ensures maximum synergy between the units and contributes to the fullest value extraction through the services provision chain
• Eurohold is among the very few Bulgarian real multinational companies with a regional transnational development model in dynamic markets with high potential
• Eurohold is controlled and managed by professionals with impeccable reputation, who created and developed several successful companies in the recent years
• The company management has a clear vision for its development, achievable goals and a concrete business plan for achieving them
• Among the partners of the company are leading international banks which provide financial stability and support for its future projects
• Eurohold has activities in sectors that will grow significantly and will benefit from the economic recovery in the medium term
• The company will be among the first Bulgarian corporations which intend to register for trading on the Warsaw Stock Exchange this year
• Well-known institutional investors and large foreign funds are among the big shareholders of the company
• Eurohold has a significant free float for the Bulgarian market, which ensures active trading and market liquidity
• The company is highly undervalued at the moment, and a strong growth in its share price is expected in the short term
Expat Capital considers this deal a strategic investment and plans not to come out of it in the next few years. Expat Capital will cooperate with the other big shareholders in Eurohold for the dynamic development of the company and for its turning into one of the 10 largest regional corporations in the medium term. Expat Capital will continue to support financially Eurohold in future capital increases in order to keep its share in the capital approximately at the current level of 20%. The investor believes that the period of silence for the Bulgarian equity market has ended, and now is the time for serious investments in the best undervalued companies.
Expat Capital is an investment company regulated by the FSC, which offers services in the fields of asset management. As of today, Expat Capital manages 3 mutual funds, 2 real estate funds, and numerous private investment portfolios. Its total assets under management are about BGN 50 mln (EUR 25.6 mln). The company is actively seeking investment opportunities in Bulgarian businesses, incl. public companies.