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Investment Summit announced
Bank accounts of TBC Bank founders seized at Georgian prosecutors’ request
TBC Group acquires leading Georgian classified e-commerce company My Group
bank has announced.
This year is the 10th anniversary of the Eastern Partnership Initiative, which the bank set up to develop closer bilateral and multilateral ties with six countriesineasternEuropeandtheSouthCaucasus:Armenia,A zerbaijan, Belarus, Georgia, Moldova and U kraine.
The EBRD is the largest institutional investor in the Eastern Partnership region and commits to supporting the development of the private sector and improving the investment climate.
The one-day summit will bring together together high-level government representatives, policy-makers, international investors and entrepreneurs. The objectives are to network, explore investment challenges and identify business opportunities in the six countries of the Eastern Partnership region.
Panel sessions will focus on current investment trends and developments, highlight the EBRD’s activities and impact, and feature discussion on sectors from renewables to agribusiness, the digital economy and private equity.
Georgian prosecutors have confirmed that bank accounts and properties in the amount of $16.6mn of TBC Bank founders Mamuka Khazaradze and Badri Japaridze are to be seized as a preventive measure under a lawsuit initiated on June 24 against the two.
The TBC founders are charged with legalisation of $16.6mn of illegal income, in August 2008.
Khazaradze announced on his Facebook account that all his and Japaridze's bank accounts have been seized, a move which prevents the functioning of their public-sponsored charity and all ongoing charity and business projects, including in Anaklia where the bankers are backing the attempt at constructing a deep sea port.
“We can't be scared! We continue the struggle! ” Khazaradze writes in his post.
TBC Bank Group announced it reached an agreement to buy a 65% stake in the leading classified e-commerce player in Georgia trading under the My.ge Group (“My Group”) name and operating classified sites myauto.ge and myhome.ge.
“The acquisition of My Group provides a strong acceleration in our ecosystems strategy. It will dramatically increase our digital presence in the Georgian market and provide access to a large number of new customers,” said chief executive officer of TBC Group Vakhtang Butskhrikidze.
According to TBC Bank Group, the agreement was reached with the founders of My.ge Lasha and Kakhaber (Kakha) Gigitelashvili. The transaction value is GEL19.5mn ($6.6mn), which means that the group is valued at GEL29.9mn. As part of the transaction, TBC Group has also entered into put/call option arrangements in respect of the remaining 35% of My Group.
My.ge group owns the platforms myauto.ge, myhome.ge, mymarket.ge, myparts.ge, mysports.ge and myjobs.ge. The sites in the group have 1.7mn unique users each month and are leaders in the classified real estate market. My Group has grown rapidly in recent years, increasing its number of unique visitors by around 20% during the last three years, while its revenue and profit before tax grew by 75% and 88% respectively during the same period. At the end of 2018, the gross assets of My Group stood at GEL3.3mn, while total revenue and profit before tax for the full year 2018 amounted to GEL4.0mn and GEL2.6mn respectively, based on My Group’s unaudited management accounts
My.ge was founded in 2002. According to the Registry of Entrepreneurs, before the acquisition of the company by TBC Group 30% of the shares were owned by Kakha Gigitelashvili and 70% by Lasha Gigitelashvili, who was also
39 GEORGIA Country Report November 2019 www.intellinews.com
