Visa Inc. Announces Sale of Minority Stake in CBSS
SAN FRANCISCO, Jan. 26, 2011 /PRNewswire via COMTEX/ --
Visa Inc. (NYSE: V) announced today that its wholly-owned subsidiary, Visa International, sold its 10 percent stake in Visa Vale issuer CBSS to Banco do Brasil and Bradesco. Visa's proceeds from the sale are expected to be approximately US$100 million based on current exchange rates.
Visa International will maintain a strong commercial relationship with CBSS, focusing on benefits cards and prepaid cards. CBSS will continue to issue Visa Vale prepaid cards and Visa International expects no disruption to cardholder service as a result of this transaction.
Visa Vale products perform a unique service for Brazilian consumers, delivering the convenience, security and accessibility that have become synonymous with the Visa brand worldwide. Since Visa's investment in CBSS, the Visa Vale program has become the market leader.
"We have successfully delivered on our objective to grow the Visa Vale platform in Brazil through our strategic partnership with CBSS. This is an example of Visa's long track record in employing strategic investments to help drive growth in emerging categories," said Ruben Osta, Country Manager for Visa do Brasil. "Expanding the use of prepaid cards is an important part of our business strategy and will complement our plans for continued investment in Brazil, one of our fastest growing markets. We will continue our solid partnership with CBSS, while evaluating opportunities to grow the Visa Vale brand."
Visa's sale is subject to regulatory approval by Brazil's Conselho Administrativo de Defesa Economica.
About Visa Inc.: Visa Inc. is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable digital currency. Underpinning digital currency is one of the world's most advanced processing networks -- VisaNet -- that is capable of handling more than 20,000 transaction messages a second, with fraud protection for consumers and guaranteed payment for merchants. Visa is not a bank, and does not issue cards, extend credit or set rates and fees for consumers. Visa's innovations, however, enable its financial institution customers to offer consumers more choices: Pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit www.corporate.visa.com.
Forward Looking Statements: This release may contain, in addition to historical information, forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current assumptions, expectations and projections about future events which reflect the best judgment of management and involve a number of risks and uncertainties that could cause actual results to differ materially from those contained herein. You should review and consider the information contained in our filings with the SEC regarding these risks and uncertainties. Visa disclaims any obligation to publicly update or revise any forward-looking statements or information provided herein.
SOURCE Visa Inc.