IDS BORJOMI International Transfers 7.73% Stake to Government of Georgia Free of Charge
By Natalia Kochiashvili
Tuesday, June 14, 2022
IDS BORJOMI International has released a statement stating that the company intends to transfer a 7.73% stake to the Georgian government free of charge after the official acceptance of the offer by the government.
As a result of the agreement the controlling shareholder will no longer have the controlling function of IDS BORJOMI International; The shareholder representation on the Board of Directors of IDS BORJOMI International will be reduced from 8 to 2 members; The Chairman of the Board of Directors of IDS BORJOMI International will be a representative of the Government of Georgia.
“In this difficult situation, this decision allows the company to continue its long-term development,” said Elkhan Alnazarov, a member of the Board of Directors of IDS BORJOMI International, thanking the government of Georgia for supporting the agreement.
On the June 13 sitting of the government, the Prime Minister of Georgia Irakli Gharibashvili said that the negotiations are over.
“Our state will become the co-owner of the Borjomi factory, our national wealth and pride,” Gharibashvili said.
According to him, this deal was concluded in full compliance with the norms of international law.
According to the Minister of Economy Levan Davitashvili, with the new scheme of transfer of 7.73% share to the Government of Georgia by IDS Borjomi International and the distribution of shares among shareholders, the Georgian government will be able to establish full control over the management of the company Borjomi.
According to him, the state was working for Borjomi to be able to function fully, and this was confirmed by their creditor banks. As a result, the company will be able to make international transfers smoothly.
Under the agreement reached, the shares of the same IDS Borjomi International of RISSA INVESTMENTS LIMITED are distributed as follows:
Erasmony Limited - 49.99%; Black Waters Limited - 38.48%; Former employee and various shareholders - 3.79%; State of Georgia - 7.73%.
The PM promises to solve all the problems of the employees of the Borjomi factories.
As for the striking employees of the Borjomi bottling plants, they were watching the statement of the Prime Minister of Georgia live. According to Giorgi Diasamidze, the head of their labor union, the demands of the strikers remain in force.
“It is the 14th day of the strike, these people have not been paid for 2 months. The issue raised at the government session regarding the state being involved in the processes and that negotiations will be held involving the Minister of Economy and the Minister of Health, we appreciate this decision, however the strike will continue in the same form.” Diasamidze said expecting the negotiation process to be constructive and 2 months' salaries to be paid.
At the same time, moving the protest rallies to Tbilisi is no longer part of their plan at this stage. However, the reinstatement of the 50 fired people remains unconditional.
Borjomi controlling stake has been owned by Alfa Group since 2013, the founder of which is a sanctioned Russian billionaire, businessman Mikhail Friedman. Both bottling plants at Borjomi have been suspended from working since April 29 due to sanctions imposed on Russia.
The strike by factory workers began on May 31. Their requirements are: Immediate reinstatement of 50 dismissed people; Return to old contracts and increase salaries by 25%, as well as the dismissal of individuals noticed in coercion, pressure, and blackmail; Transition from term contracts to perpetual contracts; Concluding a collective agreement.
