Business
Posted: 1 month ago

IDS BORJOMI Owner Ready to Transfer Part of Shares to Georgian Government Free of Charge

IDS BORJOMI has issued a statement stating that the owner of the company is ready to transfer part of the shares to the Georgian government free of charge.

According to the statement, this step will make it possible to resume the production process and launch the plant, which has been suspended for several weeks. The reason was the sanctioning of the company's shareholder Mikhail Freedman, due to which the accounts of Borjomi were frozen.

"IDS BORJOMI International announced today that after negotiations with the Georgian government, its controlling company has submitted a formal proposal to the Georgian government to transfer part of the shares free of charge. This step will allow the Georgian government to participate in the management of an international company.

Due to the recent negative developments in the region, IDS BORJOMI International is experiencing business interruptions and difficulties with banking services, which has forced the company to suspend production at bottling plants in the city of Borjomi. As a result, more than a thousand people were at risk of losing their jobs.

If the Government of Georgia approves the offer of the company that owns IDS BORJOMI International, IDS BORJOMI Georgia will be able to resume production processes and resume economic activities in the factories," the company said in a statement.

Let us remind you that on April 30, Prime Minister Irakli Gharibashvili said that the population would hear "good news" about Borjomi in the near future.

The main shareholder of IDS Borjomi International is the Russian "Alfa Group" (Alfa Finance), founded by the sanctioned Russian billionaire Mikhail Friedman. Alfa has owned a controlling stake in Borjomi since 2013 when a Russian holding bought a 60% stake in Badri Patarkatsishvili's family for $ 460 million.

Currently, IDS Borjomi International has a 60% stake in Alpha Group; The Patarkatsishvili family owns a 40% share. IDS Borjomi International is owned directly by the Cyprus-registered company Rissa Investments Limited (whose shareholders are Alpha Group and the Patarakatsishvili family).

IDS Borjomi International's assets include companies producing mineral and freshwater not only in Georgia but also in other countries. The company owns water bottling plants in the Ukrainian cities of Mirgorod and Morshin, which pour mineral water in Morshinsk. The company also owns one of Russia's leading freshwater brands, Святой источник.

"Ideas Borjomi Georgia" publishes information about its income publicly. According to a document submitted to Reportal, the company had revenue of $ 119.7 million in 2020 and a loss of $ 64.3 million. In 2019, the company generated $ 140.17 million, while its net profit was $ 17.3 million. By country, its 2020 revenue is distributed as follows:

● Russian Federation - $ 41.9 million;
● Ukraine - $ 18 million;
● Latvia, Estonia, and Lithuania - $ 14.3 million;
● Kazakhstan - $ 13 million;
● Georgia - $ 11 million;
● Belarus - $ 6.4 million;
● Uzbekistan - $ 2.2 million;
● Azerbaijan - $ 1.3 million;
● Other countries - $ 11.2 million.