On 22 June 2016, Bank of Valletta plc issued an announcement stating that Visa Inc. completed the acquisition of the entire share capital of Visa Europe. In the commentary included in the 2015/16 interim results published on 29 April 2016, BOV had already indicated that Visa Inc. was in the process of acquiring the entire share capital of Visa Europe, in which Bank of Valletta plc is a Principal member and shareholder.
The Bank’s share of proceeds from this transaction amounts to €29,141,277 comprising €22,041,822 in cash and a further €7,099,455 in Visa Inc. preferred stock.
The above consideration will be reflected in the Bank’s financial statements for the financial year ending 30 September 2016. A close estimate of this amount was recognised as a financial asset and retained within reserves in the Bank’s interim financials as at 30 March 2016. BOV explained that it will be retaining this consideration within its reserves in order to strengthen its Core Tier 1 regulatory capital.