Bank of Georgia Acquires Armenian Ameriabank

The Georgian Bank of Georgia (BOG) has announced its intention to acquire 100% of the shares of the Armenian bank, Ameriabank. One of the owners of Ameriabank was Ruben Vardanyan. Initially, the Georgian bank will purchase 90% of Ameriabank, while the remaining 10% will be retained by the European Bank for Reconstruction and Development (EBRD) in accordance with the shareholders’ agreement on the option.

The deal is valued at approximately $303.6 million. Ameriabank is evaluated at 0.65x the net asset value (NAV) of the bank as of October 31, 2023, and 2.6x the price-to-earnings ratio (P/E) of the previous year. The completion of the transaction is expected in the first quarter of 2024. The Financial Conduct Authority (FCA) of the United Kingdom has already approved the transaction circular.

Following the final approval of the deal, Ameriabank will continue its operations under its own brand and with its existing management; the bank will remain a separate legal entity. However, according to BOGG’s announcement, the group itself intends to change its name after the transaction.

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