Czech Republic-based Moneta Money Bank a.s. is in talks with Netherlands-based Home Credit BV to acquire the latter's Air Bank a.s. unit and its other businesses in the Czech Republic and Slovakia.
Both parties signed a nonbinding memorandum of understanding for the acquisition, which would create a "leading Czech retail bank" and double Moneta Money Bank's customer count to 2 million from 1 million.
The consideration for the deal is expected to be 19.75 billion Czech koruny, comprising 6.75 billion koruny in cash and 165,605,096 newly issued Moneta Money Bank shares, equivalent to a stake of 24.48% for Home Credit. The transaction is expected to close July 1, 2019, subject to regulatory approvals and Moneta Money Bank shareholder approval.
The new bank would have 237 branches and 1,005 ATMs in the Czech Republic, making it the third-largest network in the country. The transaction will aim to improve profitability and shareholder returns by more than 10%.
Home Credit operates through Home Credit a.s. in the Czech Republic and Home Credit Slovakia a.s. in Slovakia.
As of Oct. 5, US$1 was equivalent to 22.40 Czech koruny.