The Chinese-owned Georgian bank Basisbank has finalised its acquisition of 95.99% of Liberty Bank’s shares, in what appears to be a move by the bank’s former owner, Irakli Rukhadze, to distance himself from key assets after UK sanctions rocked another former asset of his — the pro-government media outlet Imedi.
Rukhadze, one of the wealthiest people in Georgia, confirmed the sale when contacted by OC Media without elaborating, saying the process had been underway for about a year.
Basisbank stated that it successfully finalised the transaction after obtaining all necessary regulatory approvals. The deal could mark a significant development in Georgia’s banking sector.
Basisbank CEO David Tsaava described the acquisition as a major milestone, saying the combination of human and technological resources would create a strong universal financial platform capable of supporting both business and retail sectors. He added that increased competition would benefit customers, while additional resources would enable greater financing opportunities for businesses and contribute to the country’s economic development.
Liberty Bank CEO Beka Gogichaishvili said it had been an honor to lead the bank during a period of significant transformation and growth. He thanked employees for their professionalism and dedication, noting these as the foundation of the bank’s success, and expressed confidence that the transaction would create new opportunities for the bank, its customers, and its team.
To ensure continuity and coordinated management, Tsaava will also assume the role of CEO of Liberty Bank. At this stage, both banks will continue operating independently, with all services, products, and customer channels functioning without interruption.
The acquisition came months after the UK imposed sanctions on the TV station Imedi for alleged involvement in Russian disinformation. Rukhadze sold Imedi to Prime Media Global for a symbolic price of ₾1,000 ($370) a month ahead of the sanctions.
Former National Bank Governor and economist Roman Gotsiridze has expressed concerns about the deal, saying that Rukhadze ‘fled’ Liberty Bank in fear of more sanctions.
Gotsiridze also expressed concern that a bank under Chinese control would distribute pensions and social benefits to more than 1.7 million people and have access to the personal data of around 40% of Georgia’s population. ‘It’s not for nothing that the US forced the Chinese to sell TikTok’, he said. At the same time, he acknowledged that through this acquisition, Liberty Bank had moved out of the risk of sanctions.
Gotsiridze also noted that the identities of the remaining minority shareholders are unknown. According to him, Liberty Bank currently serves approximately 888,000 pensioners, 700,000 social benefit recipients, and around 100,000 individual and business account holders.
Liberty bank was created in 2009, after Romanian billionaire Dinu Patriciu led the takeover of the then-named People’s Bank of Georgia through Liberty Capital LLC, an investment vehicle he created with former Georgian Prime Minister Lado Gurgenidze. Gurgenidze had stepped down as prime minister in October 2008 after less than a year in office and previously served as executive chair of Bank of Georgia.
Rukhadze, through Honeywell Partners, later agreed to acquire Liberty Bank in 2016.
Helena Bedwell
