MONETA Money Bank shares jump after overhaul of $ 1.2 billion deal for PPF’s Air Bank

PRAGUE, Nov. 19 (Reuters) – Shares of MONETA Money Bank (MONET.PR) jumped more than 6% to an all-time high on Friday after the Czech lender reshuffled the financing terms of a proposed acquisition bank assets of 25.9 billion crowns ($ 1.2 billion) of its largest shareholder PPF.

PPF, the investment group founded by the late Czech billionaire Petr Kellner, is making a final attempt to merge its Air Bank group of Czech and Slovak credit assets with MONETA, of which it already controls nearly 30%.

MONETA shareholders backed a merger in June but rejected a share issue to fund the deal and give PPF a controlling stake.

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The revised terms set out on Thursday evening give shareholders a right of first refusal on newly issued shares, unlike the previous proposal, increasing the chances of success, analysts said.

MONETA wants to raise at least SEK 20.95 billion in a two-round issue of 255.5 million shares, with the first round being open to everyone at a reduced price of SEK 82 per share.

The shares not taken will be offered in a second round at 90 kroner per share, a bonus at the close on Thursday. PPF has agreed to subscribe to all remaining shares, MONETA said.

The remainder of the purchase price will be paid from excess capital. Read more

MONETA stock was up 6.1% to Kronor 94.65 at 9:38 a.m. GMT, after a high of Kroner 94.9.

“All shareholders will have the opportunity to participate in the capital increase at a reduced price, which we consider attractive,” analysts at Erste Group Bank said.

Erste said that a PPF backstop in the second round of issuance essentially guaranteed success, while a potential takeover bid due to the breach of regulatory ownership thresholds created a bottom for the share price at level of 90 crowns, higher than before.

Shareholders will vote on the proposal at a meeting on December 20, along with a proposed dividend of SEK 3 per share payable from retained earnings of 2019 and 2020.

MONETA has said it also plans to offer a dividend of Kroner 7 per share in the first half of 2022 before the deal closes.

MONETA is the country’s sixth bank. PPF sought to create a national champion for retail and small business clients. The combined entity is said to have 2.4 million customers, or about a quarter of the country’s population.

($ 1 = 22.2770 Czech crowns)

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Reporting by Jason Hovet Editing by David Evans and Mark Potter

Our Standards: Thomson Reuters Trust Principles.


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