Proposed acquisition of Air Bank Group and related proposal for capital increase
Supporting material for the General Meeting to be held on 20 December 2021
Published on 19 November 2021
OF INSIDE INFORMATION
TABLE OF CONTENT
- OVERVIEW OF EVENTS LEADING TO THE CURRENT PROPOSAL
- PROPOSED ACQUISITION - TRANSACTION OVERVIEW
- STRATEGIC RATIONALE
- BUSINESS CASE AND MINIMUM TARGETS
- EXPERT OPINION PROVIDED BY COURT REGISTERED EXPERT
- APPENDIX:
- HISTORICAL FINANCIAL STATEMENTS (2018 - 3Q 2021)
- COMBINED ENTITY BUSINESS PLAN (as of May 2021)
- UPDATED AIR BANK GROUP BUSINESS PLAN (as of November 2021)
2
MERIT OF THE PROPOSAL
The proposal preserves rights of all MONETA's shareholders and provides underwriting guarantee of the proposed capital increase
VALUE CREATIVE INVESTMENT THESIS
FULL PROTECTION OF ALL SHAREHOLDERS' RIGHTS
UNDERWRITING OF CAPITAL INCREASE
POTENTIAL
TENDER OFFER
Performance of Air Bank Group exceeds business plan of PPF Group and is supported by recent change of interest rate environment. The acquisition holds transformational potential for MONETA.
Two round capital increase preserves pre-emptive rights of all shareholders. Non-PPF shareholders are not requested to cease control of MONETA to PPF, subject to their subscription of new shares.
PPF guarantees the proposed capital increase by providing the back-stop to subscribe "excess" of new shares not subscribed after the second round.
Through underwriting guarantee PPF increases value of potential tender offer to minimum CZK 90 per share. This is relevant should "change of control" take place. However this value does not necessarily cap the final price eventually offered, only the floor.
3
PROPOSED ACQUISITION OF AIR BANK GROUP - TIMELINE OF KEY EVENTS
MONETA convened General Meeting after negotiations with
PPF through which MONETA aimed to address shareholder and proxy advisors feedback
MONETA | MONETA's | MONETA General | MONETA received | MONETA General | ||
PPF executed | MONETA signed | Meeting to vote | ||||
received | management | Meeting on | new proposal from | |||
voluntary tender | Acquisition | on amended | ||||
PPF | published its | acquisition | PPF and signed | |||
offer at CZK 80 per | framework | acquisition | ||||
voluntary | position | rejected the | amended | |||
share, acquiring | agreement with | proposal - final | ||||
tender | concerning the PPF | proposal for | Framework | |||
29.94%1 | PPF | decision | ||||
offer letter | offer | capital increase | Agreement | |||
requested | ||||||
MONETA | MONETA | |||||
management | management | |||||
requested court | received court | |||||
registered expert | registered expert | |||||
valuations | valuations |
22 January 2021 | 29 January 2021 | 8 Feb - 5 Mar 2021 | 6 May'21 | 6 May'21 | 22 Jun'21 | 9 Jul - 3 Nov'21 | 18 Nov'21 | 20 Dec'21 |
If General Meeting rejects current proposal, MONETA's Management Board will abandon any further discussions with PPF relating to Air Bank Group acquisition.
Note: (1) Voluntary tender offer was fully settled on 20 April 2021.
4
OUTLOOK FOR THE EUROPEAN AND CEE BANKING SECTORS
The outlook for the European and CEE banking sectors has improved since the beginning of 2021
EPS (REBASED TO 100) | ROTBV (%) | P/TBV (MULTIPLE) | ||||||||||||||||||||||||||
2021E | 2021E | 2021E | ||||||||||||||||||||||||||
260 | European banks | CEE banks | 15.0% | European banks | CEE banks | 1.50x | European banks | CEE banks | 1.41x | |||||||||||||||||||
229.3 | ||||||||||||||||||||||||||||
220 | 12.6% | |||||||||||||||||||||||||||
12.0% | 1.20x | 1.08x | ||||||||||||||||||||||||||
180 | 7.7% | |||||||||||||||||||||||||||
9.0% | 9.2% | 0.90x | ||||||||||||||||||||||||||
0.81x | ||||||||||||||||||||||||||||
140 | 140.1 | |||||||||||||||||||||||||||
100 | 6.0% | 4.3% | 0.60x | |||||||||||||||||||||||||
0.64x | ||||||||||||||||||||||||||||
60 | 3.0% | 0.30x | ||||||||||||||||||||||||||
01/21 | 02/21 | 04/21 | 05/21 | 06/21 | 07/21 | 08/21 | 10/21 | 11/21 | 01/21 | 02/21 | 04/21 | 05/21 | 06/21 | 07/21 | 08/21 | 10/21 | 11/21 | 01/21 | 02/21 | 04/21 | 05/21 | 06/21 | 07/21 | 08/21 | 10/21 | 11/21 | ||
2022E | 2022E | 2022E | ||||||||||||||||||||||||||
175 | European banks | CEE banks | 15.0% | European banks | CEE banks | 1.50x | European banks | CEE banks | ||||||||||||||||||||
159.4 | 12.7% | 1.35x | ||||||||||||||||||||||||||
150 | 12.0% | 1.20x | ||||||||||||||||||||||||||
1.01x | ||||||||||||||||||||||||||||
125 | 9.0% | 8.7% | 0.90x | |||||||||||||||||||||||||
122.8 | 8.4% | |||||||||||||||||||||||||||
0.78x | ||||||||||||||||||||||||||||
100 | 6.0% | 0.60x | ||||||||||||||||||||||||||
5.7% | 0.62x | |||||||||||||||||||||||||||
75 | 3.0% | 0.30x | ||||||||||||||||||||||||||
01/21 | 02/21 | 04/21 | 05/21 | 06/21 | 07/21 | 08/21 | 10/21 | 11/21 | 01/21 | 02/21 | 04/21 | 05/21 | 06/21 | 07/21 | 08/21 | 10/21 | 11/21 | 01/21 | 02/21 | 04/21 | 05/21 | 06/21 | 07/21 | 08/21 | 10/21 | 11/21 |
Constant EPS revisions throughout the year on the back of stronger performance and more positive outlook is leading to higher expected profitability and valuation levels
Source: FactSet as of November 10, 2021 | |
Note: European banks equals Stoxx 600 Banks index, while CEE banks comprise Erste Group, Komercni Banka, Raiffeisen Bank, | |
OTP Bank, BRD Group, Banca Transilvania, Addiko Bank, and KBC Group | 5 |
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Moneta Money Bank a.s. published this content on 19 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 November 2021 15:19:01 UTC.