2nd Nov 2015 11:30
LONDON (Alliance News) - Payments processing company Worldpay Group PLC on Monday said it will sell its stake in Visa Europe to US payments company Visa Inc in a deal which will net a total of EUR1.25 billion for Worldpay and certain of its investors.
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.
By Sam Unsted; [email protected]; @SamUAtAlliance
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