PRAGUE, May 30 (Reuters) – Czech investment group PPF and MONETA Money Bank have walked away from a deal to combine their assets, the two partners said on Monday, ending a proposal that would have created a major competitor for foreign market leaders.
MONETA said the deal, which includes a 25.9 billion kroner ($1.1 billion) takeover of PPF’s banking assets in Air Bank and the Czech and Slovak operations of consumer lender Home Credit, was terminated following a decision by PPF.
“The termination comes following a change in management within the PPF group and a subsequent review of the transaction by them. Unfortunately, the review resulted in the decision by the PPF group not to proceed with the transaction. “, MONETA said in a regulatory statement.
“MONETA’s management continues to believe in the strategic merits of the operation, but in the current circumstances, it deemed it necessary to find an amicable solution with the PPF group.”
PPF said in its own statement that the collapse of the deal was the result of “macroeconomic changes that dramatically altered the parameters of the originally planned merger”, including increased capital requirements and interest rates as well as economic risks related to the war in Ukraine.
“The PPF Group was ready to meet the obligations of the transaction, but it welcomes the termination agreement, considering it the best solution both for PPF and for the other shareholders (of MONETA)”, he said. declared.
With a 29.94% stake, PPF Group remains MONETA’s largest shareholder. MONETA said the deal prevented PPF from selling or increasing the stake, but it could sell it to a strategic investor.
($1 = 22.9330 Czech crowns) (Reporting by Jan Lopatka; Editing by David Holmes)