2nd Nov 2015 12:43
LONDON (Alliance News) - Lender Lloyds Banking Group PLC and payments processing company Worldpay Group PLC on Monday said they have agreed to sell their stakes in Visa Europe to US payments company Visa Inc
Lloyds expects to make a pretax gain of around GBP300.0 million on the sale, the total consideration for which will include an upfront cash payment plus shares in Visa Inc. It did not provide any further financial details on the sale.
Visa Inc is to acquire Visa Europe for EUR16.5 billion in cash and shares. Worldpay's portion of the consideration will total EUR1.25 billion, including an upfront cash payment of EUR592.0 million and a further EUR374.0 million in shares in Visa Inc, also upfront. It will get a further EUR283.0 million in deferred consideration based on Visa Europe hitting earnings targets for the 16 quarters following the deal.
Worldpay will, however, only retain 10% of the total consideration for the stake, with the other 90% to be paid to holders of contingent value rights, a separate class of share in Worldpay.
The disposal is expected to complete in the second quarter of 2016.
Shares in Lloyds were up 0.9% to 74.41 pence on Monday, while Worldpay shares were up 1.2% to 282.25p.
By Sam Unsted; [email protected]; @SamUAtAlliance
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