Page 65 - GEORptApr21

9.2.3 TMT corporate news
Azerbaijan's Neqsol takes full but disputed control over Georgian internet provider Caucasus Online
Azerbaijan’s Neqsol Holding, owned by businessman Nasib Hasanov, has taken full ownership of Georgian internet provider Caucasus Online after purchasing the 51% stake it did not hold.
The former owner of Caucasus Online, Khvicha Makatsaria, reportedly transferred the stake to Hasanov a few days ago. He sold Hasanov a 49% stake for $61mn back in 2019.
The deal, involving British Virgin Island offshore companies, was not reported to the Georgian National Communication Commission (GNCC)—it claimed in a statement that Hasanov has become the “illegal owner” of Caucasus Online. Last September, the GNCC denied the "prior consent" required by Hasanov’s Bakcell, the owner of Neqsol, to acquire 100% of Caucasus Online.
GNCC’s decision not to allow Makatsaria to sell Caucasus Online to Hasanov has stirred plenty of controversy over alleged Russian pressure exerted on the Georgian Dream government steered by Georgian oligarch and, until recently, party chairman Bidzina Ivanishvili.
Neqsol is planning on developing an East-West internet route to compete with the existing Russian one, but it needs the Georgian network to reach Turkey and requires the Black Sea cable owned by Caucasus Online.
The 1,200-kilometre fibre-optic cable under the Black Sea, which provides 85% of internet access in Armenia, 65% in Georgia and 50% in Azerbaijan is at stake.
The initial sale of the 49% stake prompted the GNCC to use legislation revised in July 2020 to appoint a special manager to reverse the initial ownership structure. The GNCC has defended this move against criticism expressed by the Venice Commission, arguing that the Venice Commission has not questioned its right to appoint a special manager in the event that the subject company breaches regulations.
However, the GNCC has also stated that the court suspended several days ago the authority of the special manager, Mariam Sulaberidze, and that she could not return the shares to their original state.
The GNCC also said that Hasanov bought the shares of Caucasus Online “in violation of several lawsuits and today is the 100% illegal owner” of the company.
9.2.4 Metal and mining corporate news
Canadian investor to take over 50% in Georgian gold and copper mining project
Canadian company Candelaria has reached an agreement to acquire GMC Investment, which owns a 50% stake in Georgian Copper & Gold, a company with a gold mining licence for the Bolnisi district of Georgia, Candelaria said in a statement.
The share purchase agreement was signed with former owner of Georgian Copper & Gold, Empire Metals. Canadian dollar (CAD) 7mn (€4.5mn) is to be paid in equity in four stages with the final stage linked to the completion of a positive feasibility study and a final investment decision on the gold oxides at Kvemo Bolnisi East.
The Bolnisi project is situated within a highly underexplored part of the prolific Tethyan Belt, a well-known geological belt and host to many high-grade gold, copper and polymetallic deposits and producing mines, the company said in a press release.
Empire Metals executives Mike Struthers and Neil O’Brien are to join Candelaria as CEO and chairperson, respectively, while remaining non-executive directors of the London-listed company.
65 GEORGIA Country Report April 2021 www.intellinews.com