"The state should redeem the shares of Borjomi Company from Alfa Group, and then sell them to Georgian citizens through Tbilisi Stock Exchange," Mamuka Khazaradze published a post on Facebook a few days ago.
The fact is that on April 29, both bottling plants of "Borjomi" stopped. The reason is that Alfa Group, one of Russia's largest private equity holdings, owns a 60% stake in IDS Borjomi, whose founder Mikhail Friedman is on the list of sanctioned oligarchs.
"The value of 'Borjomi' is radically different today than it has been even five months ago," said Mamuka Khazaradze, who advised the government to negotiate with the company that owns the IDS Borjomi controlling stake so that the company could resume production and not lose hundreds of jobs.
"I meant concluding a contract with a state-sanctioned shareholder in the redemption of Borjomi shares from Alfa Group. When we talk about redemption, it can be a symbolic price. The fact is that the current value of "Borjomi" is radically different than it was even 5 months ago... Thus, only the state can sign such a contract with a major shareholder. Today, only the state can be the main negotiator and then the citizens can buy it through the stock exchange," he said, adding that in this situation, it would also be logical if Alfa Group donated a certain part of the shares to the state.
Mamuka Khazaradze is sure that the shares of Borjomi will be bought by citizens, but he is not going to do it and he explains why.
"Borjomi is a public product and the more Georgians take part in its management or buy its shares, it will benefit Georgia and the future of the company. I think symbolically too many people will invest money to have Borjomi securities, which will bring big profit to thier children in the future. I have left this business and I don’t have the desire to engage in it afresh”, - Mamuka Khazaradze declared.
