(Reuters) - BGEO Group Plc (BGEO.L), the holding company of JSC Bank of Georgia, said it intended to demerge into two London-listed firms - a banking business and an investment business.
The Tbilisi-based firm said its banking arm, Bank of Georgia Group, will handle the firm’s retail, corporate and investment banking, leasing services and wealth management operations.
BGEO’s Bank of Georgia unit has more than a third of Georgian banks’ market share based on total assets, loans, deposits and shareholders’ equity.
BGEO Investments will continue to invest in Georgian businesses, largely raising funds through its own financing relationships and resources, the Georgian firm said, adding its property and casualty insurance operations will be transferred to BGEO Investments.
“A demerger 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,” BGEO Group said.
Georgia’s economy minister said last month that the country’s economy has a good chance of exceeding an official 4 percent growth projection in 2017, thanks to private sector developments and the government spending on infrastructure projects.
Reporting by Noor Zainab Hussain in Bengaluru; Editing by Sunil Nair