Leumi, Discount Bank and First International Bank will receive NIS 851 million from the $23.4 billion acquisition.
The decision by global payments network Visa Inc to acquire Visa Europe will bring Israeli banks handsome earnings totaling NIS 851 million from the $23.4 billion deal.
Bank Leumi (TASE: LUMI) will receive NIS 274 million for its subsidiary Leumicard's shares in Visa Europe - NIS 274 million in cash and NIS 94 million in shares. Leumi added, "Future contingent consideration for meeting targets set by the deal that will be paid in two years time are estimated at NIS 105 million in cash." Israel Credit Cards Ltd. (CAL) owned by Israel Discount Bank (TASE: DSCT) and First International Bank of Israel (TASE: FTIN), with 72% and 28% respectively, will receive €89 million (NIS 378 million) comprised of €66 million cash and €21.2 million shares.
Published by Globes [online], Israel business news - www.globes-online.com - on December 24, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015
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