LONDON (Alliance News) - Georgia Healthcare Group PLC on Tuesday said it has agreed to buy-out the remaining 33% minority shareholding of its largest pediatric hospital, Iashvili, meaning it will pay USD1.0 million and transfer all of its assets in Tbilisi Maternity Hospital to the seller.
The London-listed company has held the controlling interest in Iashvili since February 2014, and owned the entirety of New Life since for just as long.
Following the deal, Georgia Healthcare said it will own 44 healthcare facilities with a total of 2,588 beds, of which 15 are referral hospitals operating 2,127 beds, 19 are community hospitals operating 461 beds and 10 are ambulatory clinics.
Iashvili had 266 operating beds at the end of 2015, and generated gross revenue of GEL25.2 million that year, of which GEL8.4 million was attributable to the minority shareholder. New Life had 82 operating beds at the end of 2015, during which it generated gross revenue of GEL2.4 million.
"I am pleased to announce this buy-out. The acquisition of the remaining stake in Iashvili will allow us to proceed with the full integration of Iashvili, extracting synergies and further strengthening GHG's position in the Georgian pediatric healthcare segment," Chief Executive Nikoloz Gamkrelidze said.
Georgia Healthcare was spun out of BGEO Group PLC and floated on the London Stock Exchange in November. BGEO holds 85.6 million of the 128.2 million shares in Georgia Healthcare.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Bank Of Georgia Group (BGEO)
