Demerger Update - Bank of Georgia Group PLC Capital Reduction
Bank of Georgia Group PLC ("BOGG") announces that its planned reduction of capital (including capitalising the merger reserve created in connection with the Scheme and as described in its prospectus dated 26 March 2018, the "Prospectus") became effective on 23 May 2018 ("Reduction of Capital"). The Reduction of Capital is a legal and accounting adjustment and is not expected to have any direct impact on the market value of the BOGG shares.
As announced on 21 May 2018, the Reduction of Capital is one of a number of conditions to the Demerger. The Demerger and Georgia Capital Admission are both still expected to occur on 29 May 2018, as set out in more detail in the announcement released by BOGG on 21 May 2018 entitled "Demerger Update - Scheme Effective". The Reduction of Capital has created distributable reserves for BOGG, and as announced on 26 March 2018, it is intended that the BOGG Board will recommend the payment of a dividend in an aggregate amount of approximately GEL 120 million following the Demerger.