Summary
Fifth Third Bancorp (FITB) announced on June 27, 2018, the completion of the sale of 5 million shares of Worldpay, Inc. Class A common stock. This transaction, conducted under Rule 144 of the Securities Act of 1933, resulted from Fifth Third's prior exchange of Worldpay Class B Units. The company anticipates recognizing a pre-tax gain of approximately $200 million (or $154 million after tax) in the second quarter of 2018 from this sale. Beyond the immediate financial impact, the sale is expected to positively affect Fifth Third's capital position, with an estimated increase of approximately 15 basis points to its Common Equity Tier 1 ratio. Following the sale, Fifth Third retains a significant stake in Worldpay, holding approximately 10.3 million Class B Units, which represents about 3.3% of Worldpay's equity. Investors should note that these figures are preliminary estimates for the second quarter of 2018 and are subject to change as final financial statements are prepared.
Key Highlights
- 1Fifth Third Bancorp completed the sale of 5 million Worldpay, Inc. Class A common stock shares on June 27, 2018.
- 2The sale is expected to generate a pre-tax gain of approximately $200 million, or $154 million after tax, in Q2 2018.
- 3The transaction is projected to enhance Fifth Third's capital strength by approximately 15 basis points in its Common Equity Tier 1 ratio.
- 4Fifth Third retains a substantial interest in Worldpay, owning approximately 10.3 million Class B Units, equivalent to about 3.3% of Worldpay's equity.
- 5The sale was conducted under Rule 144, exempting it from registration requirements of the Securities Act of 1933.
- 6The reported financial impacts are preliminary estimates for Q2 2018 and are subject to revision.
- 7The sale stems from Fifth Third's prior exchange of Worldpay Holding, LLC Class B Units for common stock.