Georgia Healthcare Group PLC (“GHG”) announces that two members of the senior management of GHG’s pharma business, Mr. Enriko Beridze and Mr. Mikheil Abramidze, who were the principal shareholders of JSC ABC Pharmacia (“ABC”) prior to its acquisition by GHG, together with a former minority shareholder of ABC (together the “former shareholders of ABC”) have completed the purchase of 833,160 GHG shares (representing approximately 0.7% of GHG’s issued share capital) from BGEO Investments (65% shareholder of GHG) on 17 March 2017. Given the volume of the shares involved, a private sale on an arms-length and commercial basis was selected as the most appropriate form for the transaction by both parties.
This purchase is in line with the terms of Sale and Purchase Agreement (“SPA”) between ABC and GHG, which requires the former shareholders of ABC to use 33% of the cash consideration they receive from GHG (total of US$25 million, payable in six tranches) to purchase GHG PLC’s shares. The price of GHG shares purchased by the former shareholders of ABC from BGEO Investments was GBP 3.60 (USD 4.45), being the closing price per share on the London Stock Exchange the day before the transaction. After the sale, BGEO Investments continues to own 64.3% of GHG.