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Ukrainian PrivatBank Sells Another Asset in Georgia

After selling PrivatBank Georgia, the Ukrainian PrivatBank is selling other assets in Georgia. This time — the Rustavi auto market, which has been put up for auction recently.

Specifically, a complete property complex included in Rustavi auto market AUTOPAPA Georgia Group comes on sale, including: 100% stake  in  Mikado Georgia Ltd (the owner of the land and the buildings on it); 100% stake  in Rustavi  Auto Market  Ltd. (commercial projects, operating management of the market),  100% stake in Rustavi Terminal Plus Ltd (operating management of customs control zone, a licensed manufacturer, custom terminal management); 100% stake in  Rustav Comfort Ltd (hotel operating management, along with  food  objects), as well as 100% of the management rights in  the portal http://autopapa.ge (e-automarket, the site, the server, the right to development and service contracts).

The initial sale price is $30 million. The auction will finish at 6 pm, July 31. The company’s  General Director Yevgeny Ustinov told CBW that he does not have the information as to why the founders decided to sell the auto market. He says  that currently talks are underway with three interested parties, however, other companies also showed their interest.

“We are interested in the equity participation in the project, as well as its complete selling out. Currently we are talking about the search of  new partners rather than selling the complex to develop the business more dynamically,” Ustinov notes. In his words, it is possible an interest in their business will be expressed by  a company selling new cars or owning  auto service and appropriate facilities.

Late last year, Bank of Georgia announced the acquisition of a subsidiary of the Ukrainian PrivatBank. Bank of Georgia completed the purchase of the Georgian PrivatBank in February. The cost of the transaction amounted to $45.6 million. In December 2014 CBW was told at PrivatBank head office that at that stage the issue of selling  the auto market had not been discussed.