TBC Takes on Bank Republic, Becomes Largest Georgian Bank by Loans & Deposits

TBC Bank has acquired a 93.64 percent stake in JSC Bank Republic for GEL 315 million and selected assets and liabilities of JSC Progress Bank, creating the largest Georgian bank by both loans and deposits.

TBC Bank Group PLC (TBC Bank) today announced that, together with its subsidiary, JSC TBC Bank, it has entered into an agreement with Societe Generale S.A. one of the leading universal banks in Georgia.

“We believe that the acquisition of Bank Republic is a critical step in delivering on TBC Bank’s strategy and represents a major step forward in TBC Bank’s ambition to build the leading banking group in Georgia and the broader Caucasus region,” said Vakhtang Butskhrikidze, Chief Executive Officer of TBC Bank. “Bank Republic is an excellent strategic fit for TBC Bank given its focus on the mortgage and consumer lending segments, complemented by an attractive product offering for large multinationals operating in Georgia.”

TBC Bank has already entered into preliminary negotiations to acquire the remaining 6.36 percent, currently owned by the European Bank for Reconstruction and Development (EBRD).

The transaction is expected to be completed by the end of 2016.

J.P. Morgan is acting as exclusive financial adviser to TBC Bank, and Baker & McKenzie LLP as international legal adviser throughout the acquisition process.

“The TBC Bank management team has extensive integration experience and expertise and we will ensure the smooth integration of the two businesses while remaining committed to delivering the highest level of service to the customers of both institutions,” said Antoine Gabizon, Chief Executive Officer of Bank Republic. “We are very much looking forward to welcoming Bank Republic employees into TBC Bank and helping us successfully operate and serve the clients of the largest bank in Georgia. We share similar ambitions and together we are excited by the opportunity to grow and develop the combined entity.”

TBC Bank also announced that it has reached an agreement to acquire selected assets and liabilities of JSC Progress Bank, a small local Georgian bank.  The acquisition consists of GEL 108 million of assets and GEL 108 million of liabilities.

By Katie Ruth Davies