YEREVAN — Bank of Georgia Group (BOGG) announced on Monday a $303.6 million deal to buy Armenia’s Ameriabank. BOGG is a UK registered financial group, to become the main shareholder of the Bank with the European Bank for Reconstruction and Development (“EBRD”) retaining their 10% shareholding in Ameriabank.
The deal requires the approval of the Bank of Georgia’s multiple shareholders and the Central Bank of Armenia. In a statement, the bank’s British-registered parent company, said it would “significantly enhance the Group’s presence and growth opportunities within a fast-growing and attractive market.”
“This transaction is a significant milestone for the Group and a new chapter in our strategic development,” the BOGG chairman, Mel Carvill, was quoted as saying.
“Ameriabank has a well-regarded and experienced management team, and I am delighted that they will stay on after the transaction is closed,” added Carvill.
Ameriabank is one of Armenia’s largest banks with total assets worth $3.4 billion, compared with $11.7 billion held by the Bank of Georgia.
The Financial Conduct Authority, the financial services conduct regulator in the UK, has approved the circular of the transaction. As a next step, the transaction is subject to approval by shareholders, as well as the regulatory bodies, including the Central Bank of Armenia.
Bank of Georgia Group PLC is a UK incorporated international finanacial group listed on the Premium Segment of the LSE Main Market and a constituent of the FTSE-250 index. Among the Group’s shareholders are some of the world’s largest financial institutions, such as JPMorgan, BlackRock, The Vanguard Group, Schroders, Norges Bank Investment Management (a leading pension fund), etc.
Following approvals and closing of the transaction, Ameriabank will operate as a standalone entity within the Group under its own brand name and the current leadership in place, committed to Ameriabank’s adopted strategic goals, values, mission and vision.
