Swedbank: Indicative financial effects from Visa Inc.’s intended acquisition of Visa Europe Limited

Regulatory News:

Swedbank (STO:SWEDA) (OSE: SWED) (LSE:SWK):

Visa Inc. announced an intended acquisition of Visa Europe Limited on 2 November 2015, subject to regulatory approvals. Swedbank is a member of Visa Sweden, an economic association. Visa Sweden is a group member of Visa Europe. Swedbank will, through its membership, receive part of the consideration for the intended acquisition. Such right is not possible to sell or otherwise transfer to a third party.

The transaction consists of different types of considerations, which will be paid out on different occasions. The first tranche is an upfront consideration, consisting of cash and preferred stocks convertible into Visa Inc. class A common stock. The first tranche is expected to be delivered during the second quarter 2016 to Visa Europe, subject to regulatory approvals. Swedbank expects to receive its share of the consideration through Visa Sweden during the third quarter of 2016, at the earliest.

In addition, the second tranche is a potential earn-out, subject to certain achievements. The earn-out would, if fulfilled, be paid in cash around year 2020.

Subject to completion of Visa Inc.’s acquisition of Visa Europe and Visa Sweden´s decision to distribute the proceeds, Swedbank will report a gain in 2016 as a result of said acquisition. Swedbank currently estimates the gain to be around SEK 1.5-2.5bn based on indicative calculation of the consideration to be paid in cash and preferred stocks. There are uncertainties to the final amount related to allotment calculations, exchange rates and the value of the preference shares. Due to the many uncertainties around the acquisition and the amount Swedbank can expect to receive, Swedbank will not report the right to receive payment due to the transaction as a claim in its 2015 accounts.

Swedbank AB (publ) is required to disclose this information pursuant to the Swedish Securities Markets Act (2007:528), the Swedish Financial Instruments Trading Act (1991:980) and/or the regulatory framework of Nasdaq Stockholm). This information was sent to be published on 9 December 2015 at 15.45 CET.

Swedbank promotes a sound and sustainable financial situation for the many people, households and companies. Our vision is to contribute to development "Beyond Financial Growth”. As a leading bank in the home markets of Sweden, Estonia, Latvia and Lithuania, Swedbank offers a wide range of financial services and products. Swedbank has over 7 million retail customers and around 600 000 corporate customers and organisations with 291 branches in Sweden and 147 branches in the Baltic countries. The group is also present in other Nordic countries, the US and China.

As of 30 September 2015 the group had total assets of SEK 2 312 billion. Read more at www.swedbank.com

This information was brought to you by Cision http://news.cision.com

View source version on businesswire.com: http://www.businesswire.com/news/home/20151209005843/en/