Vantiv to Buy Back $1.27 Billion in Shares Held by Fifth Third Bancorp
August 08 2017 - 1:43PM
Dow Jones News
By Justina Vasquez
Vantiv Inc. agreed to buy nearly 20 million of its shares from
former parent Fifth Third Bancorp for roughly $1.27 billion in a
move that allows the payments-processing firm to avoid stock
dilution ahead of its planned acquisition of the U.K.'s Worldpay
Group PLC.
Fifth Third exercised warrants of Class B shares it held in
Vantiv last week, converting them into 19.79 million of Class A
stock. Vantiv said Tuesday it reached a deal with the Cincinnati
bank to buy and then cancel the shares.
Fifth Third spun off Vantiv, formerly named Fifth Third
Processing Solutions, as a separate company in 2009. The bank has
been steadily shrinking its position in Vantiv in recent years.
Vantiv that following this share purchase, Fifth Third's
remaining director would resign from the company's board.
Vantiv and Worldpay also announced that talks on their planned
tie-up are continuing, about one month after Vantiv announced a $10
billion plan to takeover Worldpay.
Fifth Third will hold about a 4.9% stake in Vantiv if the
purchase of Worldpay closes.
(END) Dow Jones Newswires
August 08, 2017 13:28 ET (17:28 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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