Royal Bank of Scotland to Book GBP150 Million Gain From VocaLink Stake Sale -- Update
22 July 2016 - 12:03AM
Dow Jones News
By Ian Walker
LONDON--Royal Bank of Scotland Group PLC (RBS.LN) said Thursday
it will book a 150 million pounds ($197.82 million) pretax gain in
its accounts following Mastercard Inc.'s (MA) acquisition of
VocaLink Holdings Ltd.
The bank, which is 73% owned by the U.K. government, said it
will book the gain upon completion of the deal. It owns a 21.4%
shareholding in VocaLink.
Barclays PLC (BARC.LN) also said it has sold 13.68% of its
shareholding in VocaLink for GBP104 million, leaving it with a 1.5%
stake. There is also the potential to earn a further GBP29 million
provided certain VocaLink performance targets are met, the bank
said.
Barclays added that the sale is expected to raise its pro forma
CET1 ratio 3.4 basis points upon completion, which is subject to
regulatory approval. CET 1, or common equity tier 1 measures a
bank's common equity capital as a percentage of risk-weighted
assets.
Mastercard said earlier Thursday it was buying 92.4% of VocaLink
for $920 million. The remaining 7.6% is owned by existing
shareholders.
The deal is subject to regulatory and other approvals.
-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
(END) Dow Jones Newswires
July 21, 2016 09:48 ET (13:48 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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