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2008 December 3   09:08

UAE company buys Georgia's Black Sea port of Poti

Rak Investment, a company from the United Arab Emirates, has bought a 100% stake in Georgia's Black Sea merchant port of Poti, the Georgian Economic Development Ministry announced on Tuesday according to RIA Novosti.

In mid-2008, Rak Investment bought 51% of shares in the Poti port.

The agreement to acquire the remaining 49% stake for $65 million was formalized on Tuesday between Rak Investment management and Georgia's Economic Development Minister Yekaterina Sharashidze, the statement said.

Overall, the deal has cost the UAE company $155 million, the statement said.

Sharashidze said the company planned to build new terminals near the port.

"In the coming five years, the company is ready to invest $200 million and create up to 20,000 jobs," Sharashidze said.

The Georgian minister said the UAE company was subject to some restrictions. In particular, Rak has no right to make any decision to close down the facility without prior approval from the Georgian government.

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