Bank of Georgia steps up healthcare investment prior to spin off

6th Mar 2014 13:47

Bank of Georgia Holdings's healthcare and insurance subsidiary has increased its stake in Georgia's second largest hospital group.JSC Insurance Company Aldagi's healthcare arm upped its stake Avante Management, which owns four hospitals with a total of 578 beds located in Tbilisi and Batumi, from 80% to 100%.Following the acquisition, Aldagi has 36 healthcare facilities and 1,907 hospital beds in Georgia.BGH has during the past few years looked to diversify its revenue streams and swell non-interest income, particularly by growing and vertically integrating Aldagi. In 2013, the healthcare and insurance subsidiary contributed 10.9% to group revenue and 12.0% to profit. BGH and Aldagi are currently preparing to list Aldagi's healthcare-related business on an international stock exchange, with London's AIM being one option.OH