Bank of Georgia Holdings plc (LSE:BGEO) signed a memorandum of understanding to acquire JSC PrivatBank from Public Joint Stock Company Commercial Bank PrivatBank and others for $51 million in cash on December 4, 2014. The transaction will be financed by raising $114 million by Bank of Georgia by placing of up to 3.6 million new ordinary shares. The memorandum of understanding includes a break fee of 10% of the proposed consideration payable to either party if the other fails to enter into definitive agreements. Subject to obtaining regulatory approval, Bank of Georgia and PrivatBank will enter into a definitive sale and purchase agreement. The transaction is expected to be accretive to book value in year one. Bank of Georgia Holdings expects the acquisition of Privatbank to be earnings accretive on a run rate basis before the end of year one. Reg Hoare and Jade Neal of MHP Communications acted as public relations advisors Bfor ank of Georgia.


Bank of Georgia Holdings plc (LSE:BGEO) completed the acquisition of JSC PrivatBank from Public Joint Stock Company Commercial Bank PrivatBank and others in January 2015.