The FINANCIAL — TBC Bank Group PLC said on September 12 that it is buying a 93.64% stake in JSC Bank Republic for 103 million pounds ($136.72 million), from Societe Generale S.A., giving it full control of the bank.
The acquisition will increase TBC Bank’s loan market share by 7.3% to 35.7%, and the deposit market share by 5.3% to 34.5%, it said, according to Dow Jones Business News.
Once fully achieved, pre-tax cost synergies from the acquisition have been estimated at GEL 21 million, being derived primarily from marketing, consulting costs, streamlining of other administrative expenses as well as from moderate branch network optimization, the company added.
The consideration is 70% payable in cash from own funds and 30% in newly issued TBC Bank shares, it said. As a result of the transaction, Societe Generale will become a 5.4% shareholder in TBC Bank with a holding period (lock-up) of one year, which can be waived by TBC Bank at its discretion.
The parties have also agreed to explore future partnering opportunities within Georgia, TBC said. TBC Bank has already entered into preliminary negotiations to buy the remaining 6.36% stake owned by the European Bank for Reconstruction and Development.
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