Azerbaijani businessman acquires 85% of the internet supply to Armenia from Georgian company: new details

The owner of the Georgian company Caucasus Online, Khvicha Makatsaria, has sold the remaining 51% of shares to the Azerbaijani company Nexol Holding. As a result, Azerbaijani businessman Nasib Hasanov has become the sole owner of 100% of the company's securities. This was reported by Tert.am, citing businessformula.ge. Caucasus Online supplies up to 80% of the internet in the region.

The Georgian Communications Commission has informed Tert.am that the transaction is not considered valid, citing several violations of international and domestic regulations. “Nasib Hasanov has purchased the remaining 51% of ‘Caucasus Online’ in violation of several court proceedings, resulting in him being an illegal owner of 100% today,” stated representatives from the Communications Commission of Georgia.

Previously, 49% of the company’s shares had been transferred to the Azerbaijani entity in 2019, a transaction that also lacked agreement with the Georgian Communications Commission. Consequently, the Commission has repeatedly requested the company to revert the securities to their initial state. Instead, the additional 51% was sold to an Azerbaijani entity.

As for Armenia, there has been no official response regarding the Azerbaijani businessman’s control over the company, what risks this poses, and how they will be regulated.

Tert.am has learned from Caucasus Online that in 2010, the Georgian company gained access to the entire South Caucasus region, covering Georgia, Armenia, Azerbaijan, as well as Iran and Iraq. Over the years, Caucasus Online has managed to establish a leading position in the region, capturing a significant share of the wholesale internet market.

According to company information, it provides 65% of the internet to Georgia, 85% to Armenia, and 50% to Azerbaijan. Caucasus Online owns 100% of 'Georgian Railway Telecommunications' (GRT), which ensures full access to the 'Caucasus Online GRT' infrastructure, consisting of 600 km of fiber optic cable and connecting equipment to networks from Azerbaijan, Armenia, and Turkey, along with an underwater fiber optic cable linking Poti (Georgia) and Varna (Bulgaria).