28th Oct 2024 11:41
(Alliance News) - Georgia Capital PLC shares fell on Monday amid political turmoil in Georgia following the country's parliamentary election on Saturday, while the company itself posted a rise in net asset value.
Shares in the Tbilisi-based investor in Georgian businesses were down 9.5% to 935.45 pence in London near midday. Feeling the same downdraft, Bank of Georgia Group PLC was off 6.4% to 3,745.00p.
The Georgian opposition called for protests on Monday, and the EU demanded an investigation into "irregularities", after a disputed legislative vote that showed a win for the ruling party, AFP reported.
Georgia Capital on Monday said NAV rose 3.3% to GBP22.82 as at September 30 from GBP22.10 at June 30. In Georgian lari, it improved 6.2% on-quarter to GEL83.41 as at September 30 from GEL78.55.
Revenue climbed 12% to GEL584.2 million, about GBP166.4 million, in the third quarter of 2024, from GEL522.3 million a year ago.
Earnings before interest, tax, depreciation and amortisation jumped 17% to GEL79.1 million from GEL67.9 million.
Looking ahead, Chief Executive Officer Irakli Gilauri said: "I believe that Georgia Capital has all the key fundamentals in place to continue delivering consistent NAV per share growth over the medium to long term - and to progress further towards achieving our key strategic priorities."
Also on Monday, Georgia Capital said it entered into an agreement with a subsidiary of Royal Swinkels NV for the sale of its 92.4% stake in its beer and distribution business.
After the sale, the business will be held through a new holding company based in the Netherlands. The beer and distribution business handles international brands such as Heineken and owned local craft brand Black Lion. The sale is expected to be completed before the end of 2024.
Georgia Capital will receive about USD63.0 million in net proceeds for the sale, and it will have a 20% holding in the Dutch holding company, with Royal Swinkels holding the remaining 80%.
There is an option in place for the sale of Georgia Capital's remaining 20% holding.
Peer Swinkels, chief executive officer of Royal Swinkels, said: "We are excited to partner with Georgia Capital and the talented people in the beer and distribution business, who have played a vital role in shaping the business into what it is today. This acquisition offers a portfolio of strong brand names, a modern brewery, strong distribution capabilities, and numerous growth opportunities. We have complete confidence in the teams and look forward to collaborating with them to drive the business' continued success."
By Tom Budszus, Alliance News slot editor
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