BGEO demerger finalised as Bank of Georgia and Georgia Capital trade separately
Bank of Georgia Group said it had issued and allotted a further 9,784,716 of its shares equivalent to 19.9% of its issued ordinary share capital, to Georgia Capital in consideration for the transfer to Bank of Georgia Group by Georgia Capital of the latter's stake in the banking business.
"As set out in the Bank of Georgia Group prospectus dated 26 March 2018, for as long as Georgia Capital's percentage holding in Bank of Georgia Group is greater than 9.9%, Georgia Capital will exercise its voting rights at Bank of Georgia Group general meetings in accordance with the votes cast by all other Bank of Georgia Group Shareholders on Bank of Georgia Group votes at general meetings," the FTSE 250 company said in its statement.
Georgia Capital, meanwhile, announced that its proposed reduction of capital - including capitalising the merger reserve created in connection with the demerger and as described in its prospectus dated 26 March - was now expected to become effective on 12 June, rather than on 26 June as previously proposed.
"The reduction of capital is a legal and accounting adjustment and is not expected to have any direct impact on the market value of the Georgia Capital shares," its board stated. ■