Bank of Georgia to acquire PrivatBank branch

private in GeorgiaThe Bank of Georgia, the country's largest financial institution, signed an agreement with PrivatBank to acquire 100% of the assets of PrivatBank's Georgian branch. The transaction is valued at $51 million. The agreement includes a 10% penalty for any breach by either party. The transaction will close upon receipt of the necessary regulatory approvals.

PrivatBank is the ninth-largest bank in Georgia, with a 3,2% market share. Its focus is on retail banking. Loans represent 85% of its loan portfolio, with card accounts accounting for 69%. The bank's network consists of 93 branches, 429 ATMs, and 1929 POS terminals.

The buyer says the transaction "is part of the bank's expansion strategy and has significant synergy potential, particularly in the more profitable retail business."

 

 

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