Page 61 - GEORptMar21

9.2.5 Utilities corporate news
Georgian Post manager speaks of company’s ‘gradual’ privatisation
Georgian businessman picks up 25% of electricity distributor Telasi as sole bidder at auction
The privatisation of the Georgian national postal operator, Georgian Post, will be carried out in stages, according to the company’s general director, Levan Chikvaidze.
"The national operator has become interesting when it comes to private investment and it is attracting investors in this direction. In my view, this will be gradual privatisation. There is no [fitting] example of full privatisation for such companies around the world and the number of fully privatised national postal operators worldwide is very small, there are three of them. There are many partially privatised companies in European countries and Georgia will be one of them," said Chikvaidze said at press conference on the company’s annual report.
But the calendar of the intended privatisation remains unclear.
“As for deadlines, everyone wants the privatisation to start as soon as possible because these investments should improve the activities of the national operator and the Georgian citizen should receive better services,” Chikvaidze said.
Asked about the price Georgian Post might fetch, Chikvaidze’s remained vague.
The possible privatisation of Georgian Post was mentioned in November 2018 when then economy minister Giorgi Kobulia spoke about it in an interview with Bloomberg. At the end of 2020, present economy minister Natia Turnava announced that the government would return to the issue of postal privatisation this year.
Giorgi Khishtovani, head of the independent PMC Research Center, remained sceptical about the Georgian Post privatisation, pointing to the company’s difficult financial situation.
“This company has been planning for the sale every two years for the last 15 years, each time it becomes difficult to find a buyer and when the company does not have a buyer, the price of the asset is important. The focus should be on the long-term perspective and how the private sector can add value to the company, leave employees in work and contribute to the development of the economy," Khishtovani said.
Best Energy Group, a two year-old company founded and wholly owned by businessman Khvicha Makatsaria, has bought 24.5% of major Georgian electricity distribution company JSC Telasi from the state. The sale took place in a public auction at the starting price of Georgian lari (GEL) 32.4mn ($10.5mn).
Makatsaria is also a shareholder in Caucasus Online and owns a controlling stake in Tbilisi Energy.
Best Energy Group was the sole participant in the auction.
The controlling stake in Telasi, amounting to 75.11%, is held by Silk Road Holdings B.V., a company registered in the Netherlands and founded by Russian energy group InterRAO.
Telasi’s total revenues in 2019 amounted to GEL453mn ($151mn). Net profit stood at GEL14mn ($4.66mn).
The company distributes electricity to Tbilisi and the surrounding area, to both households and companies.
61 GEORGIA Country Report March 2021 www.intellinews.com