Armenia's major bank up for sale: acquired by a Georgian or British bank?
Ameriabank is being sold
The Georgian bank BOGG (Bank of Georgia Group) has announced the acquisition of Ameriabank for $303.6 million. Ameriabank is one of the largest banks operating in Armenia. Its co-owner is businessman and philanthropist Ruben Vardanyan, who is presently incarcerated in an Azerbaijani prison. He was apprehended in September 2023 while departing Nagorno-Karabakh, during the period when the entire Armenian population relocated to Armenia following the military operation by the Azerbaijani armed forces.
“Ruben Vardanyan has no involvement in the potential sale of the bank,” stated Mesrop Arakelyan, Vardanyan’s former advisor, addressing inquiries regarding the prospective transaction.
This statement was issued amidst discussions regarding the potential coercion of the Armenian billionaire, who finds himself in Azerbaijani custody, within Armenia.
Political observer Hakob Badalyan, however, approached the issue from a different point of view. He raised the question of whether there might be big politics behind the deal. “Big money does not exist outside of big politics,” he believes.
All the details about the bank sale transaction and commentary from the political observer.
The primary shareholder of the bank will be a company registered in the UK
Bank of Georgia Group is an international financial institution registered in the UK, with its shares listed on the London Stock Exchange (LSE). Its shareholders comprise some of the world’s largest financial institutions, including JP Morgan, BlackRock, Vanguard Group, Schroders, Norges Bank Investment Management, and others.
The UK Financial Conduct Authority has issued a circular regarding this transaction:
“As the next step, the deal must be approved by the general meetings of shareholders of the parties, as well as regulatory authorities, including the Central Bank of Armenia.”
Reportedly, Bank of Georgia is considering rebranding its acquisition. Ameriabank has stated that they view the potential transaction as “a means of facilitating their long-term development”:
“Upon successful completion of the process, Ameriabank will join an internationally listed financial group, gaining access to global financial markets for capital and investment.”
It is also understood that, as per the agreement between the parties, the Georgian bank will acquire 90% of Ameriabank’s shares, with the European Bank for Reconstruction and Development retaining the remaining 10% of shares.
“Vardanyan has not been involved in managing the bank for quite some time”
Vardanyan’s former advisor stated on his Facebook page that the businessman has not been involved in managing the bank for quite some time and even resigned from the bank’s board.
“Ruben Vardanyan is not even a shareholder of Ameriabank. 48.8% of Vardanyan’s shares were transferred to Imast Group (CY) Limited.”
Mesrop Arakelyan also emphasized that no single shareholder has the authority to make decisions on such matters independently. Discussions regarding the potential sale of the bank commenced as early as 2022.
He also noted that “any prospective transaction for the sale of the bank must receive approval from the state authorities of the Republic of Armenia.”
Comment
Political observer Hakob Badalyan, commenting on the sensational news regarding the sale of Ameriabank, discusses two circumstances that have drawn public attention:
- Ruben Vardanyan being a shareholder of the bank,
- suspicions regarding the presence of Turkish capital in the shares of Bank of Georgia.
“The basis for these suspicions arises from the significant economic presence of Turkey and Azerbaijan in Georgia as a whole. However, there is currently no factual data confirming such suspicions,” reports Hakob Badalyan.
Nonetheless, according to a political observer, the deal holds more significance than it initially appears. He points out that recently, HSBC, one of the largest British banks, announced its decision to withdraw from Armenia. He questions whether this transaction signals the substitution of one “major British capital” with another.
He notes the juxtaposition: as one British bank exits Armenia, Bank of Georgia, with its British registration and affiliation with a large financial conglomerate, enters the market.
The observer also highlights a major Armenian-Georgian commercial deal that became public following the signing of a declaration on strategic cooperation between Armenia and Georgia:
“Although there are no indications that the private interbank transaction was directly related to the declaration of interstate strategic cooperation, the context is noteworthy and symbolic.”
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Ameriabank is being sold
