Viva Wallet agrees to buy out Praxia Bank

Viva Wallet’s negotiations for the acquisition of online lender Praxia Bank have led to a definitive agreement, after Praxia’s talks with Pancretan Bank fell through. This is set to turn online ticket and financial services provider Viva into a bank.

Viva expressed an interest in Praxia in December, when Bob Diamond, who controls 100 percent of Praxia through Atlas Capital, informed the lender he was going to divest and sell his stake.

From the outset, Viva Wallet’s interest in Praxia was associated with its intention to obtain a credit institution license in Greece, and it also made clear that the business model Praxia had developed was not in accordance with its own plans.

Sources said the price of the buyout ranges between 8 and 10 million euros, not including the funds that Viva intends to invest in Praxia. The agreement requires the approval of regulatory authorities, including the Bank of Greece.

This follows the successful share capital increase Viva recently completed with the entry into its share capital of British private equity fund Hedosophia. The fund founded in 2012 and managed by Ian Osborne covered the 60-million-euro capital increase in full this month, obtaining preferential shares with voting rights.