Bank of Georgia: 97% of shareholders accept tender offer

Bank of Georgia Holding (BGH) announced that holders of Bank of Georgia’s GDRs (BGEO LI) and ordinary shares that jointly represent 97% of share capital agreed to exchange their securities into shares of BGH. The minimum required level of acceptances for the offer is 80%. The deadline for exchange of GDRs expired on February 20, while the exchange offer to holders of ordinary shares remains open until February 24. BGH shares are expected to start trading on the LSE on February 28, 2012. Bank of Georgia plans to close its GDR program by June 30, 2012 and potentially cancel listing of its shares on the Georgian Stock Exchange. Also, since BGH will hold more than a 95% of shares in Bank of Georgia, it will be able to compel the minority shareholders to sell their stakes to BGH.