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(Alliance News) - Georgia Capital PLC on Monday said it was offering Georgia Healthcare Group PLC shareholders the opportunity to exchange their shares for shares in Georgia Capital.
The company has set the exchange ratio at 0.192, meaning that 5.22 Georgia Healthcare shares can be exchanged for one Georgia Capital share.
However, Georgia Capital noted that it will exchange a maximum of 4.5 million shares, equivalent to 23.6 million shares in Georgia Healthcare.
If exercised in full, Georgia Capital's shareholding in Georgia Healthcare would increase to almost 75% from 57%.
In turn, Georgia Healthcare said it welcomed Georgia Capital's "continued confidence" in its strategy and management. Georgia Healthcare said the exchange offer provides a liquidity event for its shareholders and an opportunity to exchange their investment for one in the "more liquid" Georgia Capital.
The exchange offer will be opened from Monday to December 17. Georgia Capital said it has agreed with the UK Takeover Panel that the exchange offer is not a takeover offer and therefore is not subject to the Takeover Code.
"We believe Georgia Healthcare represents an attractive and unique opportunity to participate in the continued growth and consolidation of the healthcare sector in Georgia," said Georgia Capital Chair Irakli Gilauri.
"Accordingly, both as an expression of our support for Georgia Healthcare but also as a way of allowing Georgia Healthcare shareholders to choose how they wish to manage their exposures, we are pleased to make this exchange facility available," added Gilauri.
Georgia Healthcare shares were trading up 0.8% in London on Monday at 181.50 pence each, while Georgia Capital shares were down 2.4% at 966.00p each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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