Armenia gives preliminary consent to purchase of Ameriabank by Bank of Georgia

By bne IntelliNews April 2, 2024

The Central Bank of Armenia's Board has preliminarily approved the acquisition of a significant stake in Ameriabank CJSC by Bank of Georgia Group PLC (BOGG) and Bank of Georgia JSC, according to finport.am. This decision, announced on March 29, follows BOGG's earlier February announcement of its intent to purchase 100% of Ameriabank for approximately $303.6mn. Subsequently, the Asian Development Bank (ADB) agreed to sell its shares in Ameriabank to the Bank of Georgia. BOGG will acquire 90% of Ameriabank's shares, leaving the European Bank for Reconstruction and Development (EBRD) with a 10% stake. Prior to this, ADB held a 13.92% stake, with other major shareholders including Imast Group (S-Wye) Limited at 48.82%, EBRD at 17.71%, ESPS Holding Limited at 12.05%, and Afeyan Foundation for Armenia Inc. at 7.5%.

As of January 1, 2024, Ameriabank's assets were $3.5bn, with a loan portfolio of $2.4bn, securities investments of $380mn, total capital of $483.7mn, and total liabilities of $3bn, of which $2.2bn were customer liabilities. Ameriabank's net profit for 2023 was $113.8mn, ranking it among the top three banks in Armenia in terms of key balance sheet metrics, and it has a BB- long-term issuer credit rating from S&P Global Ratings with a stable outlook.

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