Bank of Georgia to buy Ameriabank for $303.6 million 

Bank of Georgia announced that it will acquire Armenia’s Ameriabank CJSC for around $303.6 million in cash, an acquisition that will enhance its presence and growth opportunities in the market.

The deal will be funded by the surplus capital of Bank of Georgia. It will acquire 90% of the bank, with the European Bank for Reconstruction and Development holding the remaining 10%.

“Bank of Georgia Group PLC (‘BOGG’ or the ‘Group’) announces the proposed acquisition of 100 per cent. of a leading bank in Armenia, Ameriabank CJSC (‘Ameriabank’), 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 are pleased to announce that conditional agreement has been reached to acquire 100% of the total issued share capital of Ameriabank CJSC (the ‘Acquisition’). 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 ‘Enlarged Group’),” the statement reads.

The company said that no shareholder dilution is expected for existing shareholders from the transaction and that the enlarged group’s dividend and capital distribution policy, subject to trading and prospects being satisfactory, will remain unchanged.