Banking on growth: B&C helps Bank of Georgia with milestone £303.6m acquisition of Ameriabank

22/02/2024

We're delighted to have helped Bank of Georgia Group PLC (BOGG) with its US$303.6m proposed acquisition of 100 per cent. of a leading bank in Armenia, Ameriabank CJSC. This acquisition will significantly enhance BOGG’s presence and growth opportunities within a fast-growing and attractive market.

Ameriabank has an attractive franchise in an attractive market, with similar characteristics to Georgia, and provides BOGG with significant upside potential from leveraging the Group’s existing customer focus and digital/payments capabilities. The US$303.6m cash transaction is fully financed by surplus capital of the Group at an attractive valuation, maximising shareholder return while preserving the strong capital ratios of JSC Bank of Georgia.

Mel Carvill, Chairman of the Board of Directors of Bank of Georgia Group PLC commented: "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... 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.”

Our thanks to our wonderful clients at Bank of Georgia Group and legal advisors Baker McKenzie.

If you'd like to find out more about how we can help your milestone transactions run smoothly, chat with us today: hello@blackandcallow.com

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