28th Mar 2025 16:12
(Alliance News) - TBC Bank Group PLC on Friday said it has agreed to consolidate its businesses in Uzbekistan under a single holding company called TBC Digital.
The Tbilisi-based lender in Georgia and Uzbekistan said the consolidation is to enhance its joint venture arrangements with the European Bank for Reconstruction and Development and the International Finance Corporation.
TBC entered a joint venture with EBRD and IFC to support the growth of Uzbek subsidiary TBC Bank in September 2021.
TBC retained 60% ownership of the TBC UZ joint venture, with the rest split equally between EBRD and IFC.
TBC, EBRD and IFC have now agreed for TBC UZ to be 100% owned by TBC Digital, of which TBC will own around 80% and EBRD and IFC will own 10% each.
EBRD and IFC have also entered a new option agreement that means they may exercise a put of their shares in TBC Digital to TBC after five years.
TBC also has a call option after eight years, which allows it to acquire for cash any shares in TBC Digital held by EBRD and IFC.
The new arrangements will come into effect after the completion of all requirements, which is expected to be within the next three months.
Chief Executive Officer Vakhtang Butskhrikidze said: "We are grateful to our partners at the EBRD and IFC for their unwavering commitment to the success of TBC Uzbekistan, our fast-growing digital banking business.
"The establishment of TBC Digital as our new holding company will unlock additional synergies, enhance governance and create more value for our shareholders."
Shares in TBC Bank Group were down 1.5% to 4,260.00 pence in London on Friday afternoon.
By Michael Hennessey, Alliance News reporter
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