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Georgian Airways Is Sold For USD 150 MLN

61e587827c616
Natia Taktakishvili
17.01.22 19:05
1215
Georgian Airways is sold for USD 150 million. Georgian Business Brokerage, founded by Roman Bokeria, the former director of Georgian Airways, is working to find a new investor for the airline.

Airways is in the process of insolvency/rehabilitation since December 31, 2021 and owes a debt of more than GEL 175 million towards dozens of parties, while its assets amount to GEL 21 million.

According to Roman Bokeria, as of the legislation a foreign party cannot own a majority stake in the Georgian National Airline, so only 49% of the company can be sold through a deal.

Roman Bokeria declares, that in order to strengthen the airline and bring foreign partners, Georgian state to buy a small package of the company's shares, so that investors will have more confidence in this regard.

Sale of Georgian Airways

“We confirm that agreement has been signed between Georgian Business Brokerage and Georgian Airways, according to which we must find a new partner who will become owner of 49% of the Georgian National Airline.

As you know, Georgia has signed an "Treaty On Open Skies" with the European Union, according to which the Georgian side must own at least 51% of the country's national airline. Correspondingly, only residents of non-EU countries, which are not members of Treaty Open Skies, can buy 100% of the company.

Georgian Business Brokerage (www.business-brokerage.com) is a corporate member of the International Business Brokers Association www.ibba.org, headquartered in the United States. Georgian Business Brokerage attracts international private sector investors through a professional network of American and European business brokers”, - Roman Bokeria declares.

According to him, as for the price of Georgian Airways USD 150,000,000, this is the minimum price estimated by Georgian Business Brokerage.

“I became the director of Georgian Airways February 2019. By this time, the Georgian National Aviation had the highest parameters of financial and economic development. The company had 16 new flights to Europe, consistently attracted by modern aircraft, statistically extremely attractive growth rate, which led to issuing shares with Initial Public Offering (IPO) at the international stock exchanges in London and New York and attracted $ 500,000,000 in financial investment and regional investment. Unfortunately, in July 2019, Russia banned all direct flights and deprived the company of 45% of its revenue. The company received a $ 30,000,000 loss due to the ticket refund and canceled flights. And then COVID-19 deteriorated company’s financial situation further and got into a dire financial situation”, - Roman Bokeria declared.