Page 71 - GEORptNov21

Georgian Capital to buy remaining 33% minority stake in Gefa pharma network by 2027
country’s most advanced medical laboratory, at Megalab. It is also funded by the EBRD.
Georgian investment holding Georgian Capital announced that it will become the owner of a 100% stake in the pharmaceutical network Gefa (including GPC and Pharmadepo) by 2027.
According to the information published on the London Stock Exchange, the redemption of shares from businessmen will be carried out in six steps and it will be completed in 2027.
Following the initial pharmacy businesses purchases in 2016 and 2017, Georgian Healthcare Group (GHG), which is part of Georgian Capital, has held a 67% equity stake in the combined retail (pharmacy) business. It has a call option on the minority stake during the 12 months starting from January 2023. The remaining 33% minority stakeholders, Enrico Beridze and Mikheil Abramidze, who are also the managing partners of the retail business, have a put option for the minority stake also during the 12 months starting from January 2023.
Gefa is the leading pharma chain in Georgia and it operates about 300 pharmacies throughout the country. The company generated revenue of GEL679.5mn ($225mn) in 2020, which was 10.5% more than the previous year. In 2020, the company had a net profit of GEL32.5mn.
In the first half of 2021, GEFA's total revenue amounted to GEL372.8mn ($125mn), which is 16.9% more than the previous year.
9.2.5 Metal and mining corporate news
Georgian Manganese invests another $2mn in expanding production
Georgian Manganese has invested another $2mn in expanding its production, according to a July 20 announcement.
The company has recently faced numerous strikes from workers at its mines. In the 4th workshop of the Georgian Manganese Ferroalloy Plant, the overhaul of the 26th furnace has been completed and put into operation.
The furnace will produce 70 tonnes of additional products per day, which will increase the existing production volume to at least 25,000 tonnes, or 10%. The new furnace is to produce $43mn worth of products a year. It took five months to complete the capital work, with a total investment of more than $2mn.
According to the Ministry of Economy, the production process of the new furnace, which has a capacity of 22.5 MW, will be carried out in a semi-closed cycle. Consequently, during the metal release process, no harmful dust is emitted outside. The commissioning of the furnace created an additional 20 jobs.
At the opening of the new furnace, Natia Turnava, Georgia’s Minister of Economy, said that ferroalloys account for almost 10% of the country's local exports. Georgian Manganese employs about 5,000 people in the towns of Zestaponi and Chiatura.
Mine strikes in Georgia’s northwest have become a regular occurrence over the past few years. In mining towns ranging from Tkibuli to Chiatura, work has regularly ground to a halt as workers protest dangerous conditions and late and insufficient pay.
71 GEORGIA Country Report November 2021 www.intellinews.com