Matt Atlas

Moneta Money Bank Strikes Deal To Buy PPF’s Air Bank For CZK 25.9 Billion

PPF and Moneta Money Bank have agreed on a new model for financing the merger of Moneta Money Bank and the banking division of PPF, which includes Air Bank, Czech and Slovak Home Credit and Benxy (Zonky). PPF Group announced this in a press release today. The merger agreement was approved by Moneta Money Bank shareholders in June this year, but at the same time they rejected the then proposed financing model. The new financing agreement requires the new approval of the General Meeting of Moneta Money Bank. PPF pointed out that this is also the last opportunity for Moneta’s shareholders to support the intention to merge the Air Bank Group and Moneta Money Bank.

“PPF Group continues to pursue its vision of creating a strong domestic bank with Czech capital. The merger of Air Bank with Moneta seems to be a very suitable, but not exclusive, platform for this purpose. expectations, and the prospect of its further appreciation has increased significantly, it is also the last opportunity for Moneta’s shareholders to support the intention to merge the Air Bank and Monety groups, “said the PPF Group. According to PPF, the transaction provides Moneta shareholders with an optimal strategy for increasing the value of their investment and the stability of dividend yield. “If Moneta’s shareholders do not approve the transaction, PPF will no longer support the sale of its assets to Moneta,” PPF added in a press release.

The sale of the Air Bank Group is no longer conditional on the acquisition of control of the PPF Group over Moneta Money Bank, and Moneta’s shareholders are guaranteed preferential rights to subscribe for Moneta shares on financially attractive terms. “The changed terms of the transaction give Moneta the security of financing the purchase price and offer Moneta shareholders a unique opportunity to work with PPF to maximize the future value of the merger or, at their sole discretion, to sell the shares profitably,” PPF said.

At the extraordinary general meeting of Monety Money Bank in June, 61.9 percent of the shareholders present were in favor of the merger, for example, 50 percent. In the second vote, which required 75 percent of the vote to increase capital, 61.69 percent voted in favor.

According to the proposal at the June General Meeting, Moneta was to acquire one hundred percent of the Air Bank Group’s shares from the PPF Group at a purchase price of CZK 25.9 billion. This would be paid from CZK 2.59 billion of the bank’s surplus capital and from CZK 23.31 billion obtained by paying the issue price by the PPF Group for the subscription of 291,375,000 newly issued Moneta shares. New shares were to be issued for CZK 80 per share and to increase the bank’s total capital. PPF then had to own 55.38 percent of the bank’s shares.

According to the number of clients, the merger could create the third largest bank on the Czech market after Česká spořitelna and ČSOB. Moneta Money Bank has been operating under its current name since 2016. At that time, the bank’s name was changed from the former GE Money Bank in connection with its listing on the stock exchange in May of the same year. Moneta is one of the largest companies traded on the Prague Stock Exchange.

PPF Group invests in many industries, from financial services, telecommunications, real estate, engineering to biotechnology. At the end of the first half of the year, PPF owned assets worth 40.3 billion euros (approximately 1.02 trillion crowns) and employed 80,000 people worldwide.