Helsinki, Finland, 2016-01-26 13:00 CET (GLOBE NEWSWIRE) --
Aktia Bank plc
Stock Exchange Release
26.1.2016 at 2 p.m.
DIVESTMENT OF HOLDINGS IN VISA EUROPE GENERATE ONE-OFF INCOME IN 2016
Aktia Bank is a part owner of Visa Europe and a broker of Visa Europe’s card services. The Board of Directors of Visa Europe has, supported by authorisation from the owners of the company, agreed to sell the company to the American Visa Inc. subject to regulatory approval. The expected time frame for a decision on whether the sale may be executed is the second quarter of 2016.
Based on an analysis of the transaction terms and of the allocation of the purchase price later proposed by Visa Europe, the transaction will, upon execution, generate other operating income amounting to approximately EUR 7 million before tax for Aktia Bank plc.
Besides upfront consideration for the transaction, an additional earn-out may be paid 4 to 12 years later. Further, Aktia Bank may receive shares of considerations paid to other Visa part owners, the card products of which Aktia Bank has brokered.
Both the transaction and the amount of consideration depend on a number of legal and other uncertain factors, such as profitability of Visa Europe and continued operations of Visa Inc, development of Visa Inc’s shares, development of USD exchange rate, outcome of certain legal proceedings etc. Therefore, Aktia Bank has decided not to recognise the consideration to be received for the sale, not even in part, in the income statement.
Aktia Bank plc publishes its Accounts Announcement for 2015 and its Outlook for 2016 at approx. 8 a.m. on 12 February 2016.
AKTIA BANK PLC
Jussi Laitinen, CEO, tel. +358 10 247 6250
Fredrik Westerholm, CFO, tel. +358 10 247 6505
Distribution:
Nasdaq Helsinki Ltd
Central media
www.aktia.com
Aktia provides a broad range of products within banking, insurance and real estate agency. Aktia operates mainly in coastal areas and inland growth areas. Aktia has about 300,000 customers who are served by nearly 900 employees at 50 branch offices and via Internet and telephone services. Aktia's shares are listed on the list of NASDAQ Helsinki Ltd. For more information about Aktia see www.aktia.com