GHG buys out minority at major referral hospital

Georgia Healthcare Group PLC (the "Group" or “GHG”) announces that it has signed a binding Memorandum of Understanding, subject to relevant regulatory approvals, to buy-out the remaining 33.3% minority shareholding of its largest pediatric hospital, Iashvili Referral Hospital (“Iashvili”). GHG has held a 66.7% controlling interest in Iashvili since February 2014. In exchange for the 33.3% minority shareholding at Iashvili, GHG will pay cash of US$ 1.0 million and transfer all of its assets in Tbilisi Maternity Hospital “New Life” (“New Life”) to the seller of the minority stake. GHG has held a 100% stake in New Life since February 2014. Following this transaction, GHG will own 44 healthcare facilities with a total of 2,588 beds, of which 15 are referral hospitals operating 2,127 beds, 19 are community hospitals operating 461 beds and 10 are ambulatory clinics.

“I am pleased to announce this buy-out. The acquisition of the remaining stake in Iashvili will allow us to proceed with the full integration of Iashvili, extracting synergies and further strengthening GHG’s position in the Georgian pediatric healthcare segment,” commented Nikoloz Gamkrelidze, CEO of Georgia Healthcare Group.