December 5, 2014
Bank of Georgia (BoG) announced about the purchase of the PrivatBank’s Georgian subsidiary bank. As reported by the press service of BoG, the financial institution has signed a memorandum with the PrivatBank headquarters, located in Dnepropetrovsk, and its subsidiary PB Group about the purchase of 100 percent shares of the Georgian subsidiary bank of Ukraine’s PrivatBank for GEL 92 million (USD 51 million). Thus, the bank was sold with the capital multiplier of 1.18.
In order to finance the purchase, which is estimated in 4% of the market value of the holding company of the Bank of Georgia - Bank of Georgia Holdings (BGH), 3.59 million new stocks of BGH, or 9.99% of the current share capital will be issued additionally.
PrivatBank’s Georgian subsidiary bank is the ninth-largest bank in terms of total assets of banks in Georgia with a share of 3.2%. This subsidiary bank focuses on retail banking: loans are represented by 85% of its loan portfolio, besides the card accounts form 69% of all loans. The bank's network consists of 93 branches, 429 ATMs and 1,929 POS-terminals throughout the country.