TBC Bank will purchase a 93,64 % stake in Societe Generate’s Bank Republic for 315 million GEL (121 million EURO).
TBC Bank purchases 93 % shares of Bank Republic
By Tatia Megeneishvili
Wednesday, September 14
According to the heads of the companies, the deal will is expected to be closed till the end of this year.
According to the General Director at the TBC Bank, Vakhtang Butskhrikidze, after closing the deal, 70 % will be paid in cash from TBC funds and 30 % in newly issued TBC Bank shares.
As a result of the transaction, Societe Generale will become a 5,4 % shareholder in TBC Bank with a holding period (lock-up) of one year, which can be waived by TBC Bank at its discretion.
According to Societe Generale, the acquisition will increase TBC Bank's loan market share by 7,3 % to 35,7 %, and the deposit market share by 5,3 % to 34,5 %.
Bank Republic is the third largest bank in Georgia by total loans and fourth largest by deposits.
"The acquisition of Bank Republic is a critical step in delivering on TBC Bank's strategy and represents a major step forward in TBC Bank's ambition to build the leading banking group in Georgia and the broader Caucasus region," stated Butskhrikidze.
According to TBC Bank, the parties have also agreed to explore future partnering opportunities within Georgia.
In addition, TBC Bank said it has already entered into preliminary negotiations to acquire the remaining 6,36 % stake in Bank Republic, owned by the European Bank for Reconstruction and Development (EBRD).
TBC Bank also announced about reaching an agreement to buy selected assets and liabilities of Progress Bank.
“The acquisition consists of GEL 108 million of assets and GEL 108 million of liabilities. The transaction is immaterial from a TBC Bank perspective as it accounts for only 1, 6 % of gross assets, excluding the impact of the Bank Republic acquisition," stated Butskhrikidze.