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BGEO demerger scheme takes effect

The scheme of arrangement entailing the demerger of BGEO Group PLC into banking business Bank of Georgia Group PLC and investment business Georgia Capital PLC has now become effective, Bank of Georgia said May 21.

In line with the scheme, shares of BGEO have been cancelled and the company became a wholly owned unit of Bank of Georgia. BGEO shareholders as of May 18 received 1 share in Bank of Georgia for each share they held in BGEO, for a total of 39,384,712 Bank of Georgia shares.

BGEO's shares were delisted from the London Stock Exchange and replaced with Bank of Georgia shares, which will trade using the BGEO ticker.

The demerger is expected to take effect before 8 a.m. London time May 29, following which BGEO shareholders on the register May 25 will also receive 1 Georgia Capital share in addition to the Bank of Georgia shares they hold. Georgia Capital will be admitted to trading on the London Stock Exchange under the ticker CGEO.

Prior to the demerger, Bank of Georgia will also issue a further 9,784,716 shares, equivalent to a 19.9% stake in the bank, to Georgia Capital.

The demerger remains subject to other conditions, including court confirmation of Bank of Georgia's planned capital reduction.