Georgia Signs USD 107 mln Deal to Sell Shipping Company

Georgia has reached an agreement with the Greenoak Group, which is one of the major investor in Adjara Autonomous Republic, to sell 100% shares of the Georgian Ocean Shipping Co. Ltd.

A total cost of the deal is USD 107 million, according to a press release issued by the Greenoak Group.

This is a preliminary agreement; however ?Greenoak expects the transaction to be closed early in the New Year.?

Georgian Prime Minister Zurab Zhvania and Jan Bonde Nielsen, Chairman of Batumi Oil Terminal, which is owned by the Greenoak, signed an agreement on December 17.

The deal also envisages an agreement with the Georgian government over the joint operation of the Oil Pier adjacent to the Batumi Oil Terminal.

?It is nice to see that a company which had experience with the old government is ready to work in the new Georgia and commit serious investment here, over USD 100 million in 2005 alone,” Zurab Zhvania said.

“We have made it clear to Greenoak that they must make sure that every crew member currently employed by Ocean Shipping Co. remains employed. We have also made sure that the existing income stream to the state budget of Georgia from the Batumi Oil Pier operation will at least stay the same, with a potential to grow,? the Prime Minister added.

Along with the Batumi Oil Terminal the Greenoak Group also runs Batumitex, which is a textile company located in Batumi.

The Greenoak Group has invested in construction of a power plant with a total capacity of 60 MW in Kobuleti, in the Adjara Autonomous Republic.

Greenoak has also invested in Caspian Maritime, which is involved in constructing large shuttle tankers for use in the Caspian Sea.