GHG signs a cooperation agreement

  London, 12 July 2019

GHG signs a cooperation agreement with the country's leading

maternity house

Georgia Healthcare Group PLC ("GHG" or the "Group") announces that its hospitals business has signed a cooperation agreement (the "transaction") with one of the country's leading maternity houses, JSC "David Davarashvili Clinic" (the "Maternity Clinic"). Under the cooperation agreement the well-known Maternity Clinic, providing maternity and gynaecology services, will lease a 2,400 sq.m space at GHG's referral hospital, Iashvili Tertiary Referral Hospital ("Iashvili Hospital" or the "Hospital"). Iashvili Hospital is the cornerstone of GHG's neonatal and paediatric services and offers the most comprehensive portfolio of such services in Georgia. The Hospital has very strong reputation in the country among both physicians and patients.

As part of the contract terms, David Davarashvili Clinic will renovate and equip the leased space, which currently represents a long-term unused asset for the Hospital. The collaboration of the two leading healthcare facilities will form the country's strongest location for all types of neonatal and maternal services, further increasing Iashvili Hospital's patient footprint and occupancy rates.

"I am very pleased that GHG's Hospitals business has already made progress towards its recently declared strategy, to optimise its unused assets and increase the utilisation of its healthcare facilities. The transaction is a good example of how forming partnership with synergetic businesses can drive additional referrals at our hospitals and will help us to strengthen our positions in maternity business where we have low market share. More importantly, leasing the previously unused asset will further improve the Hospital's return on invested capital (ROIC), a key Group strategic priority." - commented Nikoloz Gamkrelidze, CEO of Georgia Healthcare Group.

Name of authorised official of issuer responsible for making notification:

Ketevan Kalandarishvili, Head of Investor Relations

About Georgia Healthcare Group PLC

Georgia Healthcare Group PLC is a UK incorporated holding company of the largest healthcare services provider in the fast-growing, predominantly privately-owned, Georgian healthcare services market. GHG's leadership position is underpinned by offering the most comprehensive range of inpatient and outpatient services targeting the mass market segment through its vertically integrated network of 18 hospitals and 35 clinics. GHG is the single largest market participant, accounting for 25% of total hospital bed capacity in the country, as of 31 March 2019. GHG is also the largest pharmaceuticals retailer and wholesaler in Georgia, with approximately 30% market share by revenue. GHG is the second largest provider of medical insurance in Georgia with a 27% market share based on net insurance premiums earned and approximately c.230,000 insurance customers as of now. GHG employed a total of c.16,092 people as at 31 March 2019, including c.3,600 physicians and 3,300 pharmacists.

For further information, please visit ghg.com.ge or contact: 

This news report is presented for general informational purposes only and should not be construed as an offer to sell or the solicitation of an offer to buy any securities