French financial group Societe Generale said it has found an agreement to sell its 93.64% stake in its Georgian subsidiary. Bank Republic, to TBC Bank, the second largest banking group in Georgia.
TBC Bank will purchase Bank Republic for around GEL315m (€121m), of which 70% would be payable in cash and 30% in newly issued TBC Bank Group shares. Societe Generale will hold a minor stake in the firm’s capital.
The transaction, pending to regulatory approvals, is expected to close by the end of the year.
Societe Generale tallies 31 million clients and said this operation would have a very limited impact on the group’s financial ratios.