Home News JSC Gergeti privatization scheduled for Autumn again

JSC Gergeti privatization scheduled for Autumn again


JSC Gergeti will be brought again on privatizing auction in September, Ilia Gotsiridze, head of department in Economic Development Ministry, told to Sarke. The auction terms have not specified yet, he noted.


JSC, operating hotel complex and ropeway on alpine resort Gudauri in Kazbegi district, was privatized in 2006.


Georgian company Tbilisi Real Estate acquired state-owned 75.13% of JSC Gergeti for $20 million instead of initial price of $4 million. However, the company had not covered the payment, and auction results were canceled.


JSC issued 5.06 million shares with nominal value 2 lari (book value – 1.67 lari). VTB Bank Georgia owns 10.64%, LLC Radiocenter Georgia – 9.09%, Silk Road Bank – 2.58% and 2.56% is held by private individuals.


According to the JSC, 2006 was unprofitable, as well as 2005 year, because of increased expenditures of repairs on skiing rout. Loss volume made up 48,900 lari, exceeding 2005 year figures by 7%.


JSC owns complex of 15,578 square m with land plot on 9.2 ha in Kazbegi district. Assets make up 8.7 million lari.


Liabilities amounted to 186,084 lari by the end of 2006, including tax liabilities (141,289 lari) and account payable (44,795 lari).

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