The FSC bans voting on Energo-Pro Sales related party deals (NEUTRAL)

The Financial Supervision Commission applied an administrative measure against Energo-Pro Sales in its capacity of a public company and ordered the issuer not to vote the proposals for two deposit contracts on its AGM. The AGM was scheduled for 18 December. Under the first proposed deposit contract, Energo-Pro Sales will deposit up to BGN 20m in Energo-Pro Varna, the majority owner, for up to 12 months at a market interest rate which would be defined at the time of the concluding the deposit contract based on offers by 3 Bulgarian banks (2.58% at the time of the proposal by the Management Board). Under the second deposit contract, Energo-Pro Sales will deposit up to €10 m in Energo-Pro a.s., the owner of Energo-Pro Varna, for up to 12 months at a market interest rate which would be defined at the time of the concluding the deposit contract based on offers by 3 Czech banks (1.00% at the time of the proposal by the Management Board). The same measure was applied to Energo-Pro Grid for its AGM, held on 15 December.