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BGEO to Finish Splitting Banking and Investment Businesses in First Half of 2018

The mentioned process will end in the first half of 2018 and both companies will place their shares at London Stock Exchange (LSE). Consequently, BGEO will be represented by three companies at LSE.

BGEO board of directors says that both independent companies will generate additional business opportunities to manage their resources more flexibly and follow their strategies.

By decision of BGEO board of directors, Georgian Capital ratio in Bank of Georgia Group will be 19.9% after the process completion, instead of 9.9% announced in July 2017. Moreover, voting right will be restricted to Georgian Capital to ensure independence of Bank of Georgia and Bank of Georgia Group’s other stakeholders will determine how Georgian Capital will vote at a stakeholders’ meeting.

Georgian Capital will regain the voting right after its ratio in Bank of Georgia declines to 9.9%. Both companies, Georgian Capital and Bank of Georgia Group will have independent supervisory boards and boards of directors.

Georgian Capital holds 57% stake in Georgian Healthcare Group (GHG), 100% stake in Georgian Global Utilities (GGU), 100% stake in M2 Real Estate, 76% stake in Teliani Valley, 100% stake in Aldagi insurance company and 19.9% in Bank of Georgia Group.