Bank of Georgia Group PLC (LON:BGEO) has announced the proposed acquisition of 100 per cent of a leading bank in Armenia, Ameriabank CJSC, for approximately $303.6 million. This acquisition will significantly enhance the Group’s presence and growth opportunities within a fast-growing and attractive market.
The Board and Management of Bank of Georgia Group PLC has announce that conditional agreement has been reached to acquire 100% of the total issued share capital of Ameriabank CJSC. BOGG believes that significant value can be derived from capitalising on opportunities within Armenia through this acquisition of a leading Armenian bank and by leveraging BOGG’s experience and expertise as it integrates Ameriabank into the wider Group. The Acquisition is conditional upon the approval of the Group’s shareholders and regulatory approvals.
The Group is set to acquire Ameriabank, a leading universal bank in Armenia, which has an attractive franchise, in an attractive market, with similar characteristics to Georgia.
· Significant upside potential from leveraging the Group’s existing customer focus and digital/payments capabilities.
· Approximately $303.6 million cash transaction fully financed by surplus capital of the Group at an attractive valuation; maximising shareholder return while preserving the strong capital ratios of JSC Bank of Georgia. Acquisition price of 0.65x net asset value as at 31 October 2023 and 2.6x P/E 2023.
· 90% of Ameriabank will be acquired upon completion of the Acquisition, with a 10% shareholding to be retained by the European Bank for Reconstruction & Development subject to a Shareholders’ (Put and Call Option) Agreement.
