Page 53 - GEORptJun20

9.1.5 ​Infrastructure and construction sector news
Georgia to decline giving second Anaklia deep water port project chance to ADC
The Anaklia deep water port project is of “strategic importance” to Georgia, but the Georgian government terminated its contract with the Anaklia Development Consortium (ADC) in early 2020 and will not be giving it another chance to build the flagship infrastructure​, Georgian economy and sustainable development minister Natia Turnava has been quoted​ ​as saying by Civil.ge.
ADC this week lobbied for a resumption of the $2.5bn public private partnership (PPP) contract, terminated in January by the government after ministers said it failed to meet set capital and financing requirements and find a strategic partner. ADC claimed it could now meet all the requirements.
The government announced, in January, that fresh bids to build the port would be invited, but the coronavirus (COVID-19) crisis appears to have prevented the progressing of the required tender.
Turnava said after a May 14 cabinet meeting that “for many years” ADC “had a very good chance” and government support “to start and finish this project”. “Unfortunately, we do not now have a reason to trust the consortium for an eighth time,” Turnava said, adding that “this issue has been closed.”
Turnava also noted that as many global companies were now switching from the “traditional industrial hubs,” Georgia has an opportunity to be “a number one choice for them” given its “attractive” geopolitical location and location on the Black Sea.
The economy minister said the Anaklia deep water port project would have “even more commercial attractiveness” in the post-coronavirus period and added that the government would hold a tender and restore coordination with financial institutions “at the earliest opportunity”.
Founded in 2014, ADC was a joint venture of Conti International and TBC Holding, then led by Mamuka Khazaradze. It won the state contract to build and operate the deep sea port in 2016.
9.1.6 ​Healthcare sector news
Georgia Capital makes all-share offer to Georgia Healthcare minority shareholders
Investment holding Georgia Capital has announced an all-share offer made to minority shareholders of Georgia Healthcare Group, in which it holds 70.6%. ​The move follows talks for a full takeover of the healthcare services, pharmacy and medical insurance provider that were declared last month.
Georgia Healthcare's shareholders would receive one Georgia Capital share for each five Georgia Healthcare shares they hold. Based on the average price of Georgia Healthcare's shares in the three months ended May 18, this represents a 9.4% premium.
Should all Georgia Healthcare shareholders accept the offer, they will own around 16.15% of Georgia Capital's enlarged share capital.
Georgia Healthcare’s just published Q1 results showed a swing to a Georgian lari (GEL) 7.5mn loss ($2.3mn) from a GEL17.4mn profit a year ago. The company posted revenues that were 10.6% y/y stronger at GEL260.1mn ($81.3mn). However, it incurred a GEL21.9mn loss caused by currency lari depreciation versus only a GEL148,000 loss in the prior year.
Separately, Georgia Capital issued a Q1 trading update. It showed its net asset value per share on March 20 to be GEL20.18, down 36% from GEL46.84 at the end of 2019.
This was attributed to "depressed valuations" of Bank of Georgia Group and Georgia Healthcare.
53​ GEORGIA Country Report ​June 2020 ​ ​www.intellinews.com