SAN FRANCISCO – Visa, one of two common stock approved for broad credit union ownership, said it will raise $700 million more for its litigation escrow by buying back Class B common shares held by its credit union and bank owners.
Under the terms of the litigation funding plan, when Visa funds the litigation account, its U.S. financial institutions, the sole holders of Class B shares, bear a corresponding financial impact via a reduction in their as converted share count. As a result, the deposit of funds has the effect of a repurchase by Visa of $700 million of Class A common stock on an as converted basis.
Credit unions acquired the shares as part of Visa’s 2007 initial public offering which restructured the card association into a public traded company.
Separately, Visa said it invested $13 million in Britain-based mobile banking service provider Monitise and received a seat on the company’s board as a result.
