Moneta signs agreement with PPF on Air Bank, Home Credit, Benxy

Moneta Money Bank has signed a framework agreement with PPF Group regarding the acquisition of Air Bank, Home Credit's Czech and Slovak businesses and Benxy, a firm running the online platform for peer-to-peer loans Zonky, Moneta announced today.

The acquisition will be subject to a shareholder approval at an extraordinary general meeting that will be held during June 2021, Moneta said.

Moneta will acquire 100 percent of shares of Air Bank Group from PPF Group for a total consideration of CZK 25.90 bn consisting of two components – cash payment CZK 2.59 bn and cash proceeds contributed by PPF Group through the subscription for 291,375,000 newly issued Moneta shares. The new shares will be issued at CZK 80 per share, increasing capital of the bank. The purchase price will be paid upon the closing of the acquisition.

Total number of shares issued will therefore increase to 802,375,000 shares (from the existing 511,000,000 shares). The acquisition will therefore dilute existing shareholder position by 36.31 percent on this basis. Subsequent to the acquisition, PPF Group will hold an estimated 55.38 percent of Moneta. In this respect, PPF Group shall be obliged to launch a mandatory tender offer to acquire up to 100 percent of Moneta shares at a minimum price of CZK 80 per share, unless the Czech National Bank mandates a different price.

The mandatory tender offer will therefore value Moneta at a minimum of CZK 40.9bn, which represents an equivalent of 1.5 times value of equity at the end of 2020 and multiple of 15.7 times of 2020 net profit.

Closing date for the acquisition is tentatively anticipated for October 1, 2021 subject to inter alia the extraordinary general meeting approval and subsequent to relevant regulatory approvals by the Czech National Bank and the National Bank of Slovakia and an antitrust approval by the European Commission.

Currently, PPF Group owns about 28 percent of Moneta mainly as a result of the voluntary tender offer at CZK 80 per share.

Source: Moneta and CTK