KIEV, Dec. 5 - Bank of Georgia (BOG), the largest financial institution in Georgia, has signed a memorandum with PrivatBank (Dnipropetrovsk) and PrivatBank's subsidiary PB Group, on the acquisition of 100% of Georgian PrivatBank for 92 million lari ($51 million), according to BOG.

"The deal is being realized as a part of the bank’s expansion strategy and has a large synergy potential, especially in the more profitable retail business," the potential buyer said.

According to BOG, the price paid for the bank, taking into account PrivatBank's operation indicators for the first nine months of 2014 under international financial reporting standards (IFRS), gives a P/BV (Price to Book Value) of 1.12 and P/E (Price-Earnings Ratio) of 3.