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GHG Announces Major Transaction in the Pharmacy Business, to Become the Largest Pharmaceutical Retailer in Georgia

GHG Announces Major Transaction in the Pharmacy Business, to Become the Largest Pharmaceutical Retailer in Georgia

Georgia Healthcare Group PLC (“GHG” or the “Group”) announces to acquire JSC ABC Pharmacia (“ABC” or the “Company”), the name of the merged company will be JSC Georgian Pharmacy (“GEPHA”).

The company informed investors that GHG has signed a Sale and Purchase Agreement (“SPA”) on acquisition of JSC ABC Pharmacia (holder of Pharmadepo), now it is a subject of competition agency approval.

Upon completion of the Transaction, GHG will own a 67% equity stake in the combined pharmaceutical business and the remaining 33% minority stake will be owned by ABC’s existing main shareholders, being Mr. Enriko Beridze and Mr. Mikheil Abramidze.

GHG will pay US$ 25.0 million (GEL c.62.2 million1) in cash to the Selling Shareholders and transfer a 33% equity stake in GEPHA to the Pharmadepo.

The completion of the Transaction is expected to be in January 2017 (“Completion”). GHG will pay the first tranche of 12 million USD as soon as its completion, while the rest of the amount into 5 tranches, within the next 5 years. To note, new company GEPHA will be the holder of 230 pharmacies throughout Georgia.