Page 52 - GEORptOct20
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9.2 Major corporate news 9.2.1 Healthcare corporate news
Georgia Healthcare Group delists from LSE
Georgian Healthcare Group (GHG), the biggest private provider of healthcare services in Georgia, has been delisted from the London Stock Exchange (LSE) after its main shareholder, Georgia Capital, made a buyout offer.
According to GHG’s website, the decision to withdraw was made by the company on July 8, although it came into force on August 5.
GHG has become a privately-held company. Its shares were fully redeemed by Georgia Capital, which previously owned a 70.6% stake in the group.
Under the offer made by Georgia Capital, GHG shareholders receive one share of Georgia Capital for every five shares of GHG.
The deadline for the exchange of shares was June 30.
GHG was listed in the premium category on the LSE in 2015. It includes healthcare services providers such as Evex and Imedi L, as well as pharmaceutical companies.
"It was a very positive development as liquidity was maintained, as GHG shareholders received shares in Georgia Capital, which is much higher in liquidity," commented Otmar Antia, an analyst at PMCG consulting firm. Recently, the liquidity of shares of Georgian Healthcare Group has decreased; however, if you look at the financial data of the company, despite the coronavirus (COVID-19) crisis, the equity was still quite solid, Antia noted.
9.2.2 TMT corporate news
US embassy in Georgia ‘terminating cooperation with local companies using Chinese telecoms equipment or services’
The US Embassy in Georgia is terminating or reducing cooperation with Georgian companies that use telecommunications equipment or services provided by Chinese companies Huawei, ZTE, Hikvision, Dahua and Hytera or their affiliates, Radio Liberty has reported.
The embassy lately sent out a questionnaire to Georgian companies it works with to determine whether their partner companies use video surveillance equipment or other equipment of Chinese companies on the list. The move indicates that the embassy will terminate or reduce cooperation with companies that use such technologies.
Business Media Group has reported that Silknet, the largest telecommunications company in Georgia and the entire Caucasus region, is a corporate partner of the embassy and is implementing a number of projects with China’s Huawei—which the US views as a security threat, claiming suspect connections with the Chinese military—including the introduction of high-speed internet.
Communicom, the Motorola reseller in Georgia, has said that its customers are already asking about replacing Chinese equipment. Communicom’s head Giorgi Shvangiradze said that both private and state agencies have made in inquiries.
"The companies we work with have informed us and asked if it is possible to replace these products with, for example, Motorola products. As far as I am aware, these products should be replaced by 2022," said Shvangiradze.
52 GEORGIA Country Report October 2020 www.intellinews.com
