19th Aug 2019 08:23
(Alliance News) - TBC Bank Group PLC said on Monday that it has acquired a 65% stake in LLC My.ge Group.
The bank will make a cash payment of GEL19.5 million, or GBP5.5 million, implying a total valuation of GEL29.9 million.
The shares that TBC Bank acquired were owned by Lasha Gigitelashvili and Kakha Gigitelashvili, who founded My.ge's, also known as My Group, in 2002. TBC Bank said it has entered into a put/call option, allowing it to potentially acquire the remaining 35% stake.
TBC Bank Chief Executive Vakhtang Butskhrikidze said: "The acquisition of My Group provides a strong acceleration in our ecosystems strategy. It will dramatically increase our digital presence in the Georgian market and provide access to a large number of new customers."
In 2018, My Group made a pretax profit of GEL2.6 million on a revenue of GEL4.0 million.
It has 1.7 million combined monthly users across its four marketplaces: automotive, automotive spare parts, consumer-to-consumer and housing.
Shares in TBC Bank were 2.5% higher at 1,332.00 pence each in London on Monday.
Related Shares:
TBC Bank Group