Page 62 - GEORptAug22

Georgian Capital to buy remaining 33% minority stake in Gefa pharma network by 2027
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 Utilities corporate news
Georgia to take management control of struggling mineral water company Borjomi
Workers at Georgia's Borjomi Mineral Water Company's factory ended a three-week strike on June 21 after a new government-brokered mediation process with the company's management resulted in an agreement.
The strike was preceded by a free transfer of part of the company's shares to the Georgian government by IDS Borjomi International. As a result of the deal, Russian oligarch Mikhail Fridman, who was the target of international sanctions imposed against Russia, lost a controlling stake in the company. Merab Akhmeteli, director of IDS Borjomi Georgia, said that after recent changes in the shareholder structure, “the company has received more opportunities to take on the position of working employees. Both sides gave in on certain issues, and we finally reached an agreement”.
The State Attorney (governor) in the Samtskhe-Javakheti region Besik Amiranashvili, who participated in the mediation process, noted that "absolutely all issues were agreed upon both by the administration of the plant and the personnel". “We can say that tomorrow or the day after tomorrow, the plant will start operating,” he added. Labour union representative Giorgi Diasamidze, who represented the interests of about 400 striking Borjomi workers in the mediation process, said the employers "conceded a lot" and that the workers also made concessions. “In general, the agreement that is being formalised today reflects the [problematic] issues of workers,” he added. Diasamidze was quoted by Netazeti as saying that all 49 employees fired from Borjomi were offered to return, but those who "did not want to work anymore received six months' compensation".
Borjomi employees went on strike on May 31 after the initial 21-day mediation process ended in failure. The strikers demanded the reinstatement of 49 employees laid off as a result of the reorganisation, the payment of overdue wages, as well as the conclusion of open-ended contracts, the conclusion of a collective agreement, and the eradication of blackmail, threats and coercion.
62 GEORGIA Country Report August 2022 www.intellinews.com