The Bank of Georgia Group has announced its acquisition of Armenia's Ameriabank CJSC for approximately $303.6 million in cash. This strategic move is aimed at enhancing the group's presence and growth opportunities in the Armenian market.

Transaction Details

The Georgia-based, U.K.-listed lender revealed that the transaction will be funded by its surplus capital. Upon completion, the Bank of Georgia Group will hold 90% of Ameriabank, with the European Bank for Reconstruction & Development owning the remaining 10%.

Growth Strategy

By acquiring Ameriabank, the Bank of Georgia Group anticipates significant value creation by capitalizing on opportunities within Armenia. Leveraging its experience and expertise, the group aims to integrate Ameriabank seamlessly and drive growth in the market.

Shareholder Benefit

Existing shareholders can expect no dilution from the transaction. The group reassures that its dividend and capital distribution policy will remain unchanged for the enlarged entity, dependent on performance and prospects.

Chairman's Insights

Chairman Mel Carvill expressed confidence in the transaction, stating, "The board believes this acquisition will enable the group to substantially increase scale and unlock additional growth opportunities. Our expertise in digitalization, payments, and customer franchise growth will be pivotal in further developing Ameriabank."

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