OREANDA-NEWS. PrivatBank and JSC Bank of Georgia, which is the leader of the Georgian banking market, have announced signing of the memorandum on purchase of PrivatBank's Georgian subsidiary bank by Bank of Georgia.

According to the PrivatBank press service, this deal is part of the Bank of Georgia's strategy on retail business expansion, as the bank is interested in engaging PrivatBank's unique experience, practices, and technologies for its further development.

The agreed purchase of JSC PrivatBank (Georgia), which is the ninth largest bank in the country in terms of assets, by Bank of Georgia for GEL 92 million is a significant deal for the market in terms of both the merger volume and the transaction amount. It exceeds the equity (the capital amount according to national accounting standards of Georgia at the end of the third quarter 2014) by 1.18.

"Selling of the network to the key player of the Georgian banking market is a logical stage in the evolution of our subsidiary bank. It provides a unique chance for its dynamic development and expansion of its customers and employees opportunities," - reported PrivatBank Press Service. - "In current circumstances PrivatBank intends to concentrate its efforts on the development of hi-tech modern services in the Ukrainian market. Also the bank plans to provide support and business advisory services to Ukrainian companies in the EU markets".

The agreement will be executed in several stages. At each stage the banks will do their best to make sure that the transformation process is comfortable to all individual and corporate customers of PrivatBank (Georgia). Also, the business processes synchronisation during the merger of banking networks will provide several additional opportunities provide many additional opportunities to PrivatBank (Georgia) employees' career growth.