TBC Group Seizes 100% Ownership of Uzbek Payme in Strategic Expansion
In a decisive move towards market consolidation, TBC Group, a Georgian enterprise, has announced its acquisition of the remaining 49% stake in Payme, Uzbekistan's preeminent online payment platform. This transaction, detailed in a statement released on the London Stock Exchange, effectively renders TBC Group the sole proprietor of Payme.
Since April 2019, TBC Group has held a 51% majority share in Payme, steering it towards consistent financial improvement. This latest venture entails a cash settlement of $55.7 million due over the subsequent ten days, bringing the company's market valuation to a significant $113.6 million.
The terms and conditions of the deal were already embedded in the initial agreement that saw TBC Group acquire its first 51% stake in Payme. Key determinants for the deal's price included factors like Payme's EBIT rate, revenue, and customer base size.
Over the years under TBC Group's leadership, Payme has witnessed substantial growth in its financial performance. In 2022, the company posted revenue and profits of $17.5 million and $11.4 million respectively, a stark improvement from 2018 figures of $1.6 million and $0.8 million. Moreover, since April 2019, Payme's user base has soared by a factor of 2.3, reaching a current total of 3.1 million users.
Vakhtang Butskhrikidze, TBC's CEO, expressed satisfaction over the acquisition, stating, "This move aligns perfectly with our publicly disclosed expansion strategy in Uzbekistan, focused on creating a premier fintech ecosystem. We foresee substantial potential synergies between our digital bank, TBC UZ, and this thriving payments business. Our unified efforts in both businesses will propel us towards achieving our medium-term goals in Uzbekistan, including a minimum 30% return on capital, 5 million monthly active users, and a contribution of 10-15% to the group's overall profit."