Fifth Third Bancorp (FITB) in Cincinnati is selling a $225 million stake in Vantiv (VNTV), its former subsidiary.
The sale would reduce Fifth Third's stake in the payment processor by 15%, it said Wednesday. Fifth Third plans to sell 15.6 million shares as part of a secondary offering in which a total of 38.6 million shares are expected to be sold. Vantiv plans to repurchase 17.5 million of the shares offered.
Fifth Third expects the sale to increase its second-quarter earnings by $145 million after tax. The $121 billion-asset company would have a 28% ownership stake in Vantiv after the sale.
There are ten underwriters of the secondary offering, including JPMorgan Chase (JPM), Credit Suisse (CS), Goldman Sachs (GS) and Morgan Stanley (MS).