Demerger process of Investment Group BGEO successfully completed

Demerger process of Investment Group BGEO successfully completed

The Bank of Georgia and the investment company Georgia Capital announced successful completion of BGEO Group demerger process. After 10 years of successful performance, one of the largest investment group of Georgia – BGEO – was demerged into two independent companies. These companies will continue operating in banking and investment directions. This demerger is a most important event in Georgia’s financial sector. From now on, the two companies will have an opportunity to independently manage all the resources, follow own strategy and ensure even better development and advancement. The stock of Bank of Georgia and Georgia Capital were successfully promoted to London Stock Exchange premium listing segment. Shares of both companies will be independently traded at London Stock Exchange: shares of the Bank of Georgia with the so-called BGEO ticker and Georgia Capital’s shares – wth CGEO ‘ticker’.

“I congratulate representatives of both companies with this success. I believe that independent advancement is the best way, since both businesses now have an opportunity to fully execute their existing potential and develop further; successful banking and investment companies create precondition for the country’s success. I am proud that now three independent companies from BGEO are represented in London Stock Exchange premium listing – Bank of Georgia, Georgia Capital and GHG Group,” – stated Irakli Gilauri, Chair of the Supervisory Board of Georgia Capital.

“I want to congratulate representatives of both banking and investment companies with successful demerger, which is the result of an interesting process and 10 years of hard work. The companies have already reached an important stage of development and now they are ready to independently continue operating. I would also like to extend my gratitude to all those people, who participated to the above process. I believe that as a result of demerger, Bank of Georgia will have an opportunity to shift to the new level of development and create an even more interesting history in the field of banking services,” – states Kakha Kiknavelidze, Director General of Bank of Georgia.

“Georgian banking sector first appeared at London Stock Exchange in 2006. Since then the trust to our financial system has significantly grown and this is evidenced with the fact that today more than a half of Georgian banking sector is represented at London Stock Exchange. this means that Georgian financial sector is healthy and sustainable, it is based on transparent management form and is regulated in accordance with international best practices. I congratulate Ben of Georgia and the investment company, as well as the entire country with this success,” – said the President of National Bank of Georgia, Koba Gvenetadze.

It is notable that after demerger of businesses into investment and banking directions, shareholders, holding shares of BGEO Group will receive one share of Bank of Georgia and one of Georgia Capital for each share they hold. Besides, at the initial stage, Georgia Capital will retain 19.9% share in the Bank of Georgia, which share will be gradually reduced.

For information, BGEO Investment Group announced about demerger into banking and investment directions on July 3, 2017. Final decision on development into two independent businesses was approved by the Shareholders’ Council of the company on April 30, 2018. As a result of demerger, the companies have supervisory boards and boards of directors independent from each other. It should be noted that from BGEO Investment Group now three companies are represented at London Stock Exchange: Bank of Georgia Group, Georgia Capital and GHG Healthcare.

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