PPF and Moneta have agreed on a new merger financing model

“The PPF Group continues to promote its vision of creating a strong domestic bank with Czech capital. The merger of the Air Bank Group with Moneta seems to be a very suitable, but not exclusive, platform for this purpose. In a situation where the financial and commercial results of the Air Bank Group significantly exceed the original investor expectations, and the prospect of its further appreciation has increased significantly, this is also the last opportunity for Monety shareholders to support the merger of the Air Bank and Monety Group, “said 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 participate with PPF in maximizing the future value of the merger, or, at their sole discretion, to sell the shares profitably,” said PPF.

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. The 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.

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Thirty years of PPF’s existence



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