Georgia Capital PLC (the Group or Georgia Capital) holds 57% of the equity shares of Georgia Healthcare Group PLC (GHG), the parent company of the largest and most diversified healthcare provider in Georgia, which operates in the healthcare services, pharmacy and medical insurance sectors. GHG is a London Stock Exchange listed portfolio company. At the time of the demerger from BGEO Group PLC, Georgia Capital announced that it was highly probable that the Group would own less than a 50% stake in GHG at the end of 2018.
In light of the prevailing market conditions, the board of directors of Georgia Capital believes that the current share price significantly undervalues the performance and prospects of GHG and has, therefore, concluded that a further reduction of the Group’s holding in GHG, at this time, will not be in the best interests of its shareholders. As such, it no longer expects to own less than a 50% stake in GHG at the end of 2018. Therefore, starting from the second half of 2018, Georgia Capital will fully consolidate GHG’s financials in its IFRS statements.