Economy and business

Alfa Group wants to transfer Borjomi to the Georgian government for free

კომპანია ბორჯომი

The producer of Borjomi mineral water, IDS Borjomi International, wants to transfer to the Georgian government, free of charge, the share in the business owned by the Alfa Group of Russian oligarchs Mikhail Fridman and German Khan.

The Russian Forbes writes about this, citing a report by IDS Borjomi International.It is noted that IDS Borjomi International, after negotiations with the government of Georgia, made an official offer to transfer a share of its shares owned by Alfa Group to the country's authorities free of charge."This move will allow the government of Georgia to participate in the management of IDS Borjomi International," the company said in a statement.The Alfa Group structure owns a controlling stake in IDS Borjomi International (55.8%), which it acquired from the heirs of the Georgian businessman Badri Patarkatsishvili in 2013. When calculating the fortune of the owners of Alfa Group in January 2022, the Russian Forbes estimated IDS Borhomi International at $1.2 billion."Our stake will be reduced to non-controlling. We are confident that in the current situation this is the only right decision that will help the group resume the operation of factories in Georgia and maintain its leading position in the mineral water and beverage market," Alfa Group's shareholder representative on the board explained to the publication. Directors of IDS Borjomi International Elkhan Alnazarov.IDS Borjomi International was founded in 2002 and unites enterprises for the production of bottled mineral water in Russia, Ukraine and Georgia. The head office is located in Cyprus.Earlier, the Georgian business publication Bussiness-partner, citing sources, wrote that the owner of Alfa Group, Mikhail Fridman, who is under sanctions, tried to sell the mineral water business using various schemes, in particular, to the widow of Badri Patarkatsishvili, Ina Gudavadze.Mineral water under the brand name "Borjomi" is produced and bottled in Georgia. Water sources are located in the Borjomi Gorge in the Samtskhe-Javakheti region. There are two bottling plants there.In April, it became known that the Georgian mineral water company Borjomi, 60% owned by the Russian Alfa Group, announced the shutdown of two of its plants due to sanctions.Alpha Group founders Mikhail Fridman, Petr Aven and German Khan were under UK and EU sanctions.