Chinese conglomerate Hualing Group has signed an agreement to acquire Societe Generale’s majority stake in Bank Republic, its Georgian subsidiary.
Following the acquisition, the Chinese will merge Bank Republic with the Basis Bank, which it acquired in Georgia in 2012, to create third-largest bank in Georgia.
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Hualing will now own controlling stakes in the new bank and occupy a majority on its supervisory board.
Societe Generale Group would own approximately 8% of the shares in the new combined entity and remain a member of the Supervisory Board, while EBRD would also hold a minority stake of approximately 3.9% in the new combined entity and remain a member of the Supervisory Board.
"Through this transaction, Hualing further demonstrates its long-term commitment to investments in Georgia and the development of the Group’s financial business sector," the Chinese group said in a statement.
The deal is subject to further due diligence on Bank Republic and BasisBank, to binding contract negotiations and, to the regulatory approvals and registrations in Georgia and in China.
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By GlobalDataHualing Group mainly operates in the fields of building, managing and renting of trade centers and wholesale markets, as well as real estate, logistics, hotel construction and management, livestock husbandry and meat processing, etc.
