Georgia values its share in IDS Borjomi at $100M

The share of mineral water producer IDS Borjomi Georgia, which its parent company IDS Borjomi International plans to donate to the Georgian government, is valued at $100 million, Georgian Prime Minister Irakli Garibashvili said, Report informs referring to Interfax.

“We had direct communication with the management company, the owners of Borjomi. There is a proposal that they transfer to the state a share, the cost of which, roughly speaking, is $100 million. The conclusion will be in a few days, we will all approve this at the next government meeting. So, there will be no problems in operating Borjomi. The brand, which is our pride, will continue to work,” the prime minister told reporters.

The Alfa Group consortium, whose beneficiaries have recently fallen under Western sanctions, owns 60% of IDS Borjomi International. Alfa Group acquired IDS Borjomi in 2013 from the family of the late businessman Badri Patarkatsishvili.

IDS Borjomi Georgia on April 29 announced a temporary suspension of production at two factories in Georgia due to financial problems. Some countries refused to buy mineral water from the company for political reasons, there were problems with access to bank accounts.

The Russian market accounts for about 50% of the total export of Georgian mineral water.