Bank of Georgia's healthcare subsidiary has agreed to acquire 50% of GNCo, which owns the largest hospital in Georgia. The move, which increases its number of beds in Georgia to 2,670, is part of the company's plan to expand its healthcare services business through such acquisitions, which are focused on the Tbilisi region.
"The completion of this substantial transaction solidifies our franchise in the capital city," said Bank of Georgia chief executive Irakli Gilauri.
"With this acquisition, our healthcare business is very well positioned for its planned international stock market listing in the second half of 2015. Furthermore, our healthcare team will shift its focus from acquisition to integration and organic development mode following this transaction." The acquired hospital is High Technology Medical Center University Clinic, a 450-bed major and well-established referral hospital in Tbilisi. The purchase has increased the gap between it and its closest competitor.
Georgia Healthcare chief executive Nikoloz Gamkrelidze added: "With this acquisition, we have reached another major milestone on the way to realising our strategy of doubling 2015 revenues by 2018. We expect our share by hospital beds to reach 27.4% nationwide and 24.3% in Tbilisi, where average spending and utilisation is substantially higher than in other parts of Georgia.
"This acquisition will enable us to tap a new segment of patients and we also expect to deliver significant cost synergies over the next few months as we integrate the new hospital."