MONETA Money Bank signs $ 1.2 billion deal for PPF’s Air Bank

PRAGUE, Nov. 18 (Reuters) – Czech lender MONETA Money Bank has reached a reshuffled Kroner 25.9 billion ($ 1.16 billion) deal to buy the Air Bank group of companies from PPF, its largest shareholder, renewing an offer that other shareholders had rejected earlier this year.

PPF, the investment group started by the late Czech billionaire Petr Kellner, is making a final attempt to combine its Czech and Slovak lending assets with MONETA to create a bank for individuals and small businesses.

MONETA shareholders had supported the combined merger at a general meeting in June but rejected a proposal to issue shares to help finance the purchase, in which PPF, a shareholder at nearly 30%, would have acquired a majority stake.

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PPF said the revamped deal, which will be submitted for shareholder approval at a December 20 meeting, is no longer conditional on obtaining a controlling stake. He said he would no longer support the sale if MONETA shareholders rejected the deal.

MONETA wants to raise at least SEK 20.95 billion in a new two-round issue of 255.5 million shares, bringing its total outstanding shares to 766.5 million, as part of the deal. The remainder of the purchase price will be paid from excess capital.

A first round of issuance of shares will be open to all shareholders at a reduced price of SEK 82 per share.

Any shares not taken will then be offered in a second round at a premium of NKr 90 per share, and PPF has agreed to subscribe to all remaining shares, MONETA said.

“The support of the PPF group effectively guarantees the success of the proposed capital increase if it is approved by the shareholders of MONETA,” said MONETA.

MONETA said shareholders will also vote for a planned dividend of 3 Kroner per share on retained earnings for 2019 and 2020. In addition, it plans to propose another dividend of 7 Kroner per share in the first half of 2022 before finalizing the dividend. ‘acquisition.

($ 1 = 22.2350 Czech crowns)

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Reporting by Jason Hovet; Editing by Dan Grebler

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