Israel’s second largest bank, Leumi, will buy 20% of the Georgian TBC Bank?s share capital, TBC Bank said on January 26.
A relevant term sheet on financing the capital increase of TBC Bank by Leumi through the purchase of newly issued shares has already been signed. The amount involved in the deal has not been disclosed.
?After the closing of the transaction, Leumi?s shareholding in the company?s share capital will be 20%. The Georgian shareholders will jointly retain the controlling interest in the bank,? TBC Bank said in a statement.
The Bank Leumi Group, with assets in excess of USD 63.62 billion, has a presence in 21 countries.
Founded in 1992, TBC Bank is one of the leading banks in Georgia. It reported a GEL 25,4 million net profit in 2006.
?Israel is one of the leading investor in Georgia which largely determined our choice to establish partnership with Leumi Bank,? Mamuka Khazaradze, founder and supervisory board chairman of TBC Bank, told the Rustavi 2 TV?s business news program on January 26
He said that TBC Bank will use additional investments to expand in the South Caucasus region.
TBC Bank is currently considering buying into one of the banks in Azerbaijan as part of the regional expansion policy, Khazaradze said.
He noted that investments in Armenia are also considered, but he added ?Armenian market is less interesting than that of Azerbaijan.?
He said the Leumi Bank is aiming at entering Eastern European markets and investments into TBC Bank was part of this policy.
?And now TBC Bank will become a grip through which it will be possible to expand in the region? We also eye Ukrainian market,? Khazaradze said.
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