The J&T Arch Investments fund will buy 9.99 percent of Moneta Money Bank from Petrus Advisers. In the coming days, the fund plans to apply to the Czech National Bank for approval to acquire a qualified holding.
The fund will buy the minority stake in two steps. The first part of 8.89 percent will be acquired immediately, while the remaining 1.1 percent will be acquired by the end of the year. The fund is buying the shares at a premium to the current market price.
“The size of the stake we are acquiring aligns with the kind of investments we are looking for in our fund. Moneta is an efficiently managed bank with significant market share in selected segments and a sustainable long-term dividend yield. In addition, the acquired position opens up relatively broad opportunities for us to move forward, which will also depend on the actions of other large shareholders,” said J&T Chief Investment Officer Adam Tomis.
According to its website, Moneta Money Bank is the fourth largest bank in the country, with about 1.5 million customers. The bank’s shares are traded on the Prague Stock Exchange. The current price is around CZK 83 per share.
Moneta increased its net profit by 53% to CZK 3.98 billion last year. Operating income fell by about eight percent to CZK 11.17 billion. The bank employs over 3,000 people, has 154 branches, and operates more than 550 ATMs across the country.
PPF, the investment group, had been bidding for a merger with Moneta, which was planning to merge with its Air Bank. In May, the companies announced that the transaction was scrapped due to adverse economic developments changing the parameters of the intended initial merger or changes in the Czech National Bank’s capital requirements for banks.
J&T Arch Investments, a qualified investor fund, is the leading investment platform of the J&T Group. The fund invests in businesses, projects, and partnerships. The fund manages not only the assets of the founders of the J&T Group but also those of private and institutional investors. J&T Arch is traded on the Prague Stock Exchange.