TBC Bank acquires Uzbekistani payment platform
By Iain Gilbert
Date: Wednesday 10 Apr 2019
(Sharecast News) - Georgian universal bank TBC Bank has agreed to acquire more than half of LLC Inspired, a leading payment platform in Uzbekistan trading under the name Payme.
TBC will spend $5.5m in cash on the 51% stake, implying a valuation of $10.8m for Payme, which will be satisfied with the group's own funds.
The FTSE 250 resident expects the transaction to close before the end of April.
TBC told shareholders it had also entered into a put/call arrangement for the remaining 49% of Payme, which, in normal circumstances, may only be exercised between the fourth and seventh anniversary of the date of completion of the transaction. The exercise price will depend on revenue, EBIT and the number of active customers that Payme achieves.
The bank said the transaction was in line with its international strategy to expand its regional operations and marks an important milestone in building its capacity in the "highly promising Uzbekistani market".
Chief executive Vakhtang Butskhrikidze said: "The acquisition of Payme is another important step in our planned expansion into Uzbekistan. It will enable us to gain immediate access to a large customer base in the country and use our core digital strengths in Georgia to innovate in the Uzbekistani market.
"With Payme joining our effort, we intend to further develop the payment business and also use it as a platform to develop new ecosystems in the country."
As of 1230 BST, TBC shares had inched forward 0.38% to 1,588p.
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