Co-op Bank’s Visa payday
THE Co-operative Bank is to receive a windfall of more than £50m thanks to the the £15bn purchase by US payments company Visa Inc of Visa Europe.
The Manchester-based lender was a member and shareholder in Visa Europe and it will receive around €56m (£36.3m) in cash, €35m (£22m) in shares plus a further earn-out based on “certain incremental net revenue targets” of Visa Europe during the 16 financial quarters following completion of the deal.
The bank said no amounts will be payable until completion which is subject to regulatory approvals and currently not expected to occur before April 1 2016.
Other major banks will receive a windfall too – Barclays will bookan initial profit of £400m on the deal, Lloyds Banking Group £300m, while Royal Bank of Scotland will pick up £200m.
In total 3,078 banks from 37 countries will be selling their shares in Visa Europe.
