On May 3 BGEO Group announced that its investment business holding company JSC Georgia Capital has acquired a 60% indirect controlling interest in Kindzmarauli Marani LLC.
“Kindzmarauli is a producer of exquisite Georgian wines and spirits, which owns 350 hectares of vineyards in Georgia’s Kakheti region. Georgia Capital will consolidate the results of Kindzmarauli’s operations from the acquisition date, and expects that the acquisition will complement and strengthen its existing beverage business with an increased presence in the growing domestic and international markets for Georgian wine”, reads the official press release.
Irakli Gilauri, BGEO CEO commented: “I am delighted to announce that our beverage business has made a
major step towards its wine business development strategy to reach a vineyard base of 1,000 hectares over
the next three years. With this acquisition, we have now reached 436 hectares of vineyards to support our
wine production, which has been supported by significant growth opportunities on international markets
provided by Georgia’s various free trade agreements, including those with China and the European Union.”
Acquisition was done through a locally established special-purpose vehicle for a total consideration of US$7.25 million representing a cash payment for an equity stake and the buyout of an existing shareholder loan.