It is undoubtedly the biggest success story of all time in the domestic financial industry. A small software and online solutions provider founded in 2000 managed to develop into the strongest new bank in Europe within 20 years with a presence in 24 countries. It becomes the first Greek unicorn, with a valuation of more than 1 billion dollars, after the deal of its minority shareholders with JP Morgan, which pays 800 million euros for 48.5%, with the aim of being the vehicle for the expansion of its activities in Geria Epirus.
We are of course talking about Viva Wallet. When the agreement is reached for the entry of the American giant into its share capital, the positions of its executives are solemn. Indicative of the importance that JP Morgan attaches to this particular investment is the fact that its head, Jamie Dimon, in the wake of the initial deal, is visiting Athens in early 2022 and crossing the threshold of the Maximos Palace for a meeting with Kyriakos Mitsotakis.
Festive atmosphere
«I think Viva is a great indicator of the engineering talent you have in this country and is a great way to grow. As you know, we have plans to expand over time, so Greece can be a technology hub for JP Morgan around the world.” he says addressing the Prime Minister. A few months later, at the bank’s Investor Day, he praised Takis Georgakopoulos, head of the group’s global payments business, for joining Viva.
The clouds, however, in the relations of the two main shareholders of the digital bank soon appear, against the background of the prospect of the acquisition of all its shares by the American group, based on their initial agreement. According to her, JP Morgan has the right to acquire in 2025 the remaining 51.5% from We Realise of its co-founders Haris Karonis and Makis Andypas, who still control manamegent to this day. What remains open, however, is the price at which the transfer will take place, which will be determined by an independent appraiser.
So when at the end of 2023 Houlihan Lokey, hired by JP Morgan, estimated the value of Viva Wallet at 1 billion euros, i.e. almost half of the purchase price of 48.5%, We Realise’s reaction was immediate. Germany’s EY was hired, which valued it at 3 billion euros. Now, the dispute between the two sides will be resolved in the courtrooms of London, following lawsuits filed by both shareholders on both sides.
According to an international news agency, JP Morgan claims that the strategy implemented by the Greek shareholders of Viva is aimed at renegotiating the original agreement, with the aim of selling their shares more expensively. “We have taken legal action after exhausting all other alternatives.” sources from the American bank were commenting. They also accuse Karonis of attempting to limit or circumvent their contractual and legal rights.
The stake
According to the reasoning of the Americans, the deal provided that the transfer of the shares will take place with a maximum valuation of 5 billion euros. On the contrary, We Realise argues that based on the disputed agreement, no shareholder can sell his shares, as long as the value of Viva falls short of 5 billion euros.
According to the same publication, the Greek side considers that JP Morgan is creating obstacles for Viva’s entry into new markets both in Europe and the USA, with the aim of reducing its valuation.
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