3rd May 2018 09:55
LONDON (Alliance News) - Georgia-focused investor BGEO Group PLC said Thursday that its investment business holding company JSC Georgia Capital bought 60% of the shares of Georgian wine and spirits producer Kindzmarauli Marani LLC.
The purchase, which gives BGEO a controlling stake in Kindzmarauli, was for USD7.3 million in cash, including the buyout of an existing shareholder.
With this move Georgia Capital hopes to increase its presence in the Georgian wine business.
BGEO Chief Executive Officer Irakli Gilauri said the purchase was a "major step towards its wine business development strategy" and aims to reach a vineyard base equivalent to 1,000 hectares within three years. Kindzmarauli has 350 hectares of vineyards.
"With this acquisition, we have now reached 436 hectares of vineyards to support our wine production, which has been supported by significant growth opportunities on international markets provided by Georgia's various free trade agreements, including those with China and the European Union," he added.
BGEO shares were trading 0.8% higher at 3,478.00 pence in London early Thursday.
Related Shares:
Bank Of Georgia Group