The Bank of Georgia Group (BOGG) has announced that conditional agreement has been reached to acquire Ameriabank, a universal bank in Armenia.
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.
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Bank of George believes there is significant potential from leveraging the Group’s existing customer focus and digital/payments capabilities. 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.
Bank of Georgia to make the purchase for approximately $303.6m
Mel Carvill, Chairman of the Board of Directors of Bank of Georgia Group said: “This transaction is a significant milestone for the Group and a new chapter in our strategic development. Through Ameriabank we are set to enter Armenia, one of the fastest-growing economies in the region. Ameriabank has a well-regarded and experienced management team, and I am delighted that they will stay on after the transaction is closed.
“The Board believes this transaction will enable the Group to substantially increase scale and unlock additional growth opportunities as our impressive results in digitalisation, payments and customer franchise growth can be applied to Ameriabank’s further development. This transaction is immediately earnings enhancing, using the Group’s existing cash resources, with no dilution for existing shareholders. The Board unanimously views it as an excellent opportunity to create more value for our shareholders.”
Archil Gachechiladze, Chief Executive Officer of Bank of Georgia Group commented: “Today we announced the proposed conditional purchase of 100% of the shares in a leading universal bank in Armenia. Ameriabank is a growing and profitable bank, that is top of mind locally, with a strong customer franchise. We see Ameriabank as an attractive platform to increase scale and further grow our business by translating some of the successes that the Group has already delivered in the Georgian market. I would like to thank Ameriabank’s team for their cooperation, and I look forward to working with them to unlock growth opportunities in one of the best-performing economies in the region.”
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