The Energy and Water Regulatory Commission (EWRC) allowed the acquisition of CEZ a.s. Bulgarian assets by Eurohold Bulgaria’s Dutch-based company, Eastern European Electric Company B.V., Eurohold [4EH] announced. The deal include 67% stake in the power distributor CEZ Distribution [3CZ] with its 100% subsidiary CEZ ICT Bulgaria and 67% stake in the electricity supplier CEZ Electro [1CZ], as well as 100% of the private companies - electricity trader CEZ Trade, the management company CEZ Bulgaria, the photovoltaic power plant Free Energy Project Oreshetz and the non-operational biomass power plant Bara Group. Recall that CPC had already allowed the deal at the end of October. “The next stage in the acquisition process will be to sign financing agreements and transfer of the shares. Eurohold will finance the acquisition through a combination of equity and borrowed capital provided by leading global investment banks.”, Eurohold said in the announcement. According to our estimations, the price of the deal (in case the initially announced EUR 335m is still valid and it is the equity price) represents a significant upside to the current prices of CEZ Distribution and CEZ Electro as the new majority owner has to extend a mandatory tender offer with minimum share price the price per share for the majority stake.