BGEO Takes Over Tbilisi Water Utility Firm

BGEO Group, a holding company of Bank of Georgia, said it has agreed to buy remaining 75% in Georgian Global Utilities Limited, which owns water and wastewater service providers in Tbilisi, Rustavi and Mtskheta.

BGEO, which already holds 25% shares in the Georgian Global Utilities, will pay USD 70 million for rest of the shareholding at the closing of the transaction within a month.

BGEO said that the deal values the Georgian Global Utilities at GEL 287.5 million (roughly USD 129.27 million as of June 23).
 
Offshore registered Georgian Global Utilities Limited (GGU) supplies water and provides wastewater service in the capital city Tbilisi through its wholly owned company Georgian Water and Power.

Georgian Global Utilities also provides similar services in Rustavi and Mtskheta, towns near Tbilisi, and also owns three hydropower generation facilities with a total capacity of 143MW.

BGEO bought 25% shares of the Georgian Global Utilities for USD 26.25 million in December, 2014.

BGEO is a UK incorporated holding company whose businesses include Bank of Georgia; Georgia Healthcare Group, which owns network of healthcare facilities under the Evex brand and medical insurance; and real estate developer m².

“The buy-out of the remaining 75% of GGU [Georgian Global Utilities ] fits into our strategy to acquire attractive businesses which can be monetized within a six year period, via an IPO” or a mergers and acquisitions trade, CEO of BGEO Group, Irakli Gilauri, said.