Ameriabank, the leading financial institution in Armenia, has been sold. Last month, it was announced that Bank of Georgia Group, owner of Georgia's largest bank, Bank of Georgia, was in negotiations to purchase Ameriabank, and on March 29th, received approval from the Central Bank of Armenia.
As a result of the transaction, Bank of Georgia Group will become a 90% shareholder in Ameriabank, while the European Bank for Reconstruction and Development (EBRD) will retain its position as a minority shareholder in the bank.
Arshaluys Mgdesyan, head of the Armenian bureau of BMG, discussed the deal with Hovhannes Khachatryan, Vice President of the Central Bank of Armenia. Khachatryan explains that this is the largest foreign investment in Armenia's financial sector to date, as none of the country's three largest banks have ever been owned by a foreign group.
"On March 29, 2024, we granted permission for Bank of Georgia Group (BOGG) to acquire Ameriabank. 10% of the bank's shares will remain owned by the EBRD, although over time its share may be bought out by the new owner of the bank. We welcome any direct foreign investments and strategic investors in the financial sector. We have experience with various foreign banks entering and exiting Armenia, and the presence of international banks in Armenia has been very positive for the country's financial sector, such as HSBC and ProCredit Bank, as well as other banks from countries with growing economies. The entry of Bank of Georgia Group is a significant event in this direction.
This is the first instance of a foreign bank acquiring one of Armenia's three largest banks. Accordingly, it was important for us to decide to grant permission to a bank from a neighboring and friendly country to enter the Armenian market. Firstly, Ameriabank will retain its name and brand. We will await updates on Ameriabank's strategy, and in a broader sense, this is a major plus for economic relations between Georgia and Armenia," says Hovhannes Khachatryan.
Bank of Georgia Group acquired Armenia's leading bank for $303.6 million.
Ameriabank, with assets exceeding 1 trillion drams ($2.5 billion), will continue to operate with its existing management, while retaining its own brand and corporate style.
According to Bank of Georgia Group, the deal provides BOGG PLC with the opportunity to increase the scale and geography of its operations by entering a neighboring, rapidly growing economy. BOGG PLC's experience will help Ameriabank's existing, highly skilled management team achieve their goals for the bank's development even faster.
