Portfolio Valuation and Ameriabank Acquisition Update
Option
valuation
WATER UTILITY BUSINESS
VALUATION OVERVIEW
VALUE DEVELOPMENT OVERVIEW
(GEL MILLION)
697.0
GCAP and the majority shareholder have put and call options
for the minority 20% equity interest in the water utility business
GCAP'S PUT OPTION
8.25x
MAJORITY SHAREHOLDER'S
CALL OPTION
8.90x
EV/EBITDA
15.6
155.0
4.0
159.0
(557.6)
Exercisable in 2025-2026.
Equity value
31-Dec-21
Sale of 80%
equity interest
Put option
valuation in 2022
Equity value of
as of 31-Dec-22
Put option
valuation in 2023
Equity value of
as of 31-Dec-23
EV/EBITDA
Exercisable on the date of expiry
of the put option in 2026 and
expiring six months thereafter.
In 2022, GCAP completed the sale of 80% interest in Water Utility business for total consideration of US$ 180 million,
translating into MOIC of 2.7x in US$ (3.6x MOIC in GEL) and IRR of 20% in US$ (27% IRR in GEL).
In 2022, remaining 20% equity interest in business was valued with the application of put option valuation and positive
developments in the normalised¹ LTM EBITDA, leading to GEL 15.6 million value creation in the business.
In FY23, the fair value of GCAP's 20% holding in the water utility business, increased by GEL 4.0 million to GEL 159.0 million.
➤ In December 2023, revised tariffs were approved for the 2024-2026 regulatory period. These tariffs had previously been
factored into the valuation assessment of the water utility business, which remained unchanged in 4Q23.
Georgia Capital PLC | 1. Normalised for the items as set out in the terms of the disposal.
GEORGIA
CAPITAL
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