Bgeo Group slurps up stake in major Georgian winemaker
BGEO Group's investment business has up a 60% controlling stake in a Georgian wines and spirits producer for $7.25m cash as it looks to build up 100s more hectares of vineyards by 2020.
Georgia Capital acquired a 60% indirect controlling interest in Kindzmarauli Marani, owner of 350 hectares of vineyards in Georgia's Kakheti region and a producer of "exquisite Georgian wines and spirits", via a locally established special-purpose vehicle in exchange for a cash payment for an equity stake and the buyout of an existing shareholder loan.
Georgia Capital will consolidate Kindzmarauli's results from the acquisition date, and said it expects the acquisition to complement and strengthen its existing beverage business.
Irakli Gilauri, chief executive of BGEO, said: "I am delighted to announce that our beverage business has made a major step towards its wine business development strategy to reach a vineyard base of 1,000 hectares over the next three years.
"With this acquisition, we have now reached 436 hectares of vineyards to support our wine production, which has been supported bysignificant growth opportunities on international markets provided by Georgia's various free trade agreements, including those with China and the European Union."