Catella to gain as Visa Inc purchases Visa Europe
Catella Group could earn €15m in cash through payments due its subsidiary Catella Bank SA from the proposed acquisition by Visa Inc. of Visa Europe.
The proposed acquisition is subject to regulatory approval, but if cleared would see Catella earn out in three ways: upfront cash, preferred stock in Visa Inc. and a potential earn-out.
Besides cash worth about €15m, Catella estimates its membership of Visa Europe would see it obtain preferred stock in Visa Inc. worth about €5m. The precise amount is yet to be determined by allocation calculations, exchange rates and the value of the preferred stock. The upfront cash could be paid as early as the second quarter of 2016. The earn-out, if confirmed, could amount to €2-€5m, and would be paid out in 2020.