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Cyprus-incorporated Mathade Buys 10% Stake in Rustavi Azot

Changes have taken places in Rustavi Azot stakeholders’ structure. According to official reports, Cyprus-incorporated Mathade has bought a 10% stake in Rustavi Azot from Agrochim S.A.

The deal value is 17.5 million USD. Final owners will not be replaced and only internal shifts are reported, the company representatives said. Georgia’s major chemical enterprise is getting ready for modernization.

To this end the company has drawn 155 million USD credit from the European Bank for Reconstruction and Development (EBRD) and Bank of Georgia. In exchange, 45% stake of the company have been mortgaged on behalf of EBRD.

The Partnership Fund will also hold a stake on temporary basis. The top margin of the stake is 45%. The Partnership Fund’s co-participation makes up 50 million USD. This financial component will be directed to rehabilitation and modernization of ammonia production line.

Energy efficient measures will be carried out and as a result, power consumption will decline by 30%. EBRD will issue 125 million USD resource, while Bank of Georgia will allocate 30 million USD.