Georgia Capital PLC Investment in the top mid-level school in Georgia (4546F)
July 15 2019 - 2:00AM
UK Regulatory
TIDMCGEO
RNS Number : 4546F
Georgia Capital PLC
15 July 2019
London, 15 July 2019
Investment in the leading mid-level school in Georgia -
Buckswood International School
Georgia Capital PLC (the "Group" or "Georgia Capital") announces
that it has signed a share purchase agreement ("SPA") to acquire an
80% equity interest in Buckswood International School - Tbilisi LLC
("Buckswood" or the "School"), subject to regulatory approvals.
-- The transaction values Buckswood's enterprise value at 6.4x EV / EBITDA 2020.
-- The acquisition of Buckswood is in line with Georgia
Capital's strategy to secure a leading private school education
platform for its mid-level segment.
-- Buckswood's existing owners will continue to lead the
business and grow the school's maximum capacity from its existing
730 learners, to approximately 2,200 learners by 2021.
Buckswood, provides high-quality education to approximately 680
learners from Preschool to 12(th) grade. The School offers a
Georgian curriculum, incorporating best practices from British
educational guidelines. Buckswood was founded in 2000 and
successfully secured a premium location for the school in Tbilisi
in 2007, which has turned it into one of the best value for money
educational institutions in the country.
Buckswood will represent the mid-level school in the Group's
portfolio. As part of the deal, the school has recently acquired a
5,000 sq.m. land plot adjacent to the current campus for US$ 1.1
million to increase its maximum capacity to approximately 1,000
learners. Following the acquisition, Buckswood will continue to
expand the existing campus and add a further campus in Tbilisi in
order to grow the maximum capacity to approximately 2,200 learners
by 2021. The Group expects that GEL 19 million capital expenditure
will be required to finance the expansion, of which no more than
GEL 11 million will be equity capital contributed by shareholders
on a pro-rata basis (Georgia Capital's share of this contribution
will be GEL 9 million) and the rest will be debt-financed.
Irakli Gilauri, Georgia Capital Chairman and CEO commented: "I
am very pleased to announce our second partnership agreement in the
education sector, with Buckswood International School. With this
acquisition, we are expanding beyond premium schools and
establishing our presence in mid-level segment through one of the
leading schools in the country. Buckswood is a well-managed,
successful business with a solid reputation and high growth
potential. I would like to welcome the strong management team and
look forward to working with them to deliver on our expected
strategy."
Sandro Vashakidze, Buckswood shareholder and director commented:
"The partnership between Buckswood and Georgia Capital will allow
us to scale-up and to give more learners access to high quality
education and facilities. We are excited to work with Georgia
Capital and believe that through this partnership we can form a
strong alliance with one of the leading institutions in the
country."
For more information about Buckswood, please visit their website
at www.buckswood.ge
Name of authorised official of issuer responsible for making
notification: Nino Rekhviashvili, Head of Investor relations
About Georgia Capital PLC
Georgia Capital is the holding company of a diversified group
focused on investing in and developing businesses in Georgia with
holdings in sectors that are expected to benefit from the continued
growth and further diversification of the Georgian economy, the
opening of the Georgian economy to Europe and economic development
in the wider region. The Group seeks to capture growth in the
sectors in which it currently operates and drive the development of
new high-growth businesses in Georgia, which it intends to add
either by acquiring businesses in their early development stage or
by establishing greenfield businesses, often consolidating
fragmented or underdeveloped markets. The Group currently has four
key portfolio companies: (i) GGU, a water utility and renewable
energy business; (ii) m(2) , a residential and commercial property
developer; (iii) Aldagi, the foremost provider of property and
casualty insurance products in Georgia; and (iv) Teliani, a leading
wine and beer producer in Georgia. In addition to its portfolio
companies, the Group holds investments in two London Stock Exchange
premium-listed Georgian businesses: GHG, (57% stake), the parent
company of the largest and diversified healthcare provider in
Georgia, which operates in the healthcare services, pharmacy and
medical insurance sectors; and Bank of Georgia Group PLC, (19.9%
stake), a leading universal bank in Georgia.
JSC Georgia Capital has, as of
the date hereof, the following
credit ratings:
S&P Global 'B+'/FC & 'B+'/LC
Moody's B2/CFR & B2/PDR
For further information, please visit www.georgiacapital.ge or
contact:
Irakli Gilauri Giorgi Alpaidze Nino Rekhviashvili
Chairman and Chief Executive Chief Financial Officer Head of Investor Relations
ir@gcap.ge +995 322 005 000 + 995 322 005 045
ir@gcap.ge ir@gcap.ge
This news report is presented for general informational purposes
only and should not be construed as an offer to sell or the
solicitation of an offer to buy any securities
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END
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