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Bank of Georgia owner – Bank Of Georgia Holding (BGH) company buys the Georgian branch of the Ukrainian PrivatBank as well as the shares of Georgian Global Utilities Limited which owns the Tbilisi water distribution company Tbilisi Water.
In addition, the company intends to issue 3.59 million shares.
BGH will pay USD 51 million for PrivatBank and USD 52 million- for 49.9% stake in Georgian Global Utilities.
According to the CEO of Bank of Georgia Irakli Gilauri, the acquisition of additional assets will strengthenthe company and increase its investment opportunities.
“Over the past few years, the company has progressed significantly in the retail, corporate and investment lending. Due to the continued growth of the Georgian economy, we hope that the bank willcontinue to progress in the future. New opportunities will appear in the country’s capital market and our company will be among the market leaders in Georgia. The new strategy aims to increase profits, “-Gilauri notes.
According to President of the Association of Banks of Georgia Zurab Gvasalia, he does not know whether or not PrivatBank will continue to operate under its own brand after the transaction, will merge with Bank of Georgia or will work as a universal financial institution or will focus on corporate or on the contrary, the retail sector.
