TBILISI, JULY 3 2017 (The Bulletin) — BGEO, the London-listed Georgian investment company that owns most of Bank of Georgia and Georgia Healthcare Group, said it will split into two companies later this year in a move that surprised analysts but sent its share price up towards an all-time high.

The de-merger will give investors more opportunity to increase their exposure to Georgia with a new company focused on retail, healthcare, drinks and utilities.

Both Bank of Georgia and Georgia Healthcare have had strong years and have become two of the Central Asia and South Caucasus region’s favourite shares.

In a statement, BGEO said it would split into two London-listed companies — Bank of Georgia and BGEO Investments. BGEO will own a 10% stake in the bank; a 57% stake in Georgian Healthcare; M2, a real estate company; Aldagi, an insurance company; GGU, a utilities company; a 72% stake in Taliani Valley, a drinks company.

“The Board of BGEO Group believes a de-merger of the businesses will deliver additional long-term value to shareholders by creating two distinct entities, each of which will have enhanced growth opportunities

in the strongly growing Georgian economy,” the BGEO statement said. The news sent BGEO’s shares up and over the next couple of days they hit a peak of 3,721p, near a high of 3,744p in March. Shares in Georgia Healthcare were steady at 370p.

ENDS

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(News report from Issue No. 336, published on July 16 2017)