PPF, Moneta ending process of Air Bank, Moneta merger

Prague, May 30 (CTK) - Investment group PPF and Moneta Money Bank (MMB) signed an agreement today to terminate the process of merging PPF's Air Bank Group with MMB, partly due to the negative economic development which has radically changed the parameters of the planned merger, both firms said in a press release.

Another reason lies in the recent changes in Czech National Bank's (CNB) requirements for banks' countercyclical capital buffer, according to the companies.

The deal was signed at PPF's proposal.

"PPF believes the conditions underlying the agreed transaction are not and will not be fulfilled. PPF Group was ready to meet the transaction's obligations, but it welcomes the termination agreement, deeming it the best solution for both PPF and other MMB shareholders," PPF spokesman Leos Rousek said.

Moneta shareholders approved the planned merger with PPF's banking arm, including Air Bank, the Czech and Slovak units of Home Credit and loan provider Benxy (providing peer-to-peer services Zonky), last December.

The purchase price of Air Bank was set at Kc25.9bn. Moneta planned to finance the purchase through a subscription of new shares and from its excess capital.

tam/er