Visa Europe will reduce its 5.3 per cent stake in Monitise, a move that is consistent with the credit card giant’s previous statement and the mobile money vendor’s disappointing performance.
The card firm said it will see out a three-year commercial agreement with Monitise that runs until end-March 2016 but said nothing about an extension.
Visa Europe said last year it was chewing over its options regarding a 5.3 per cent stake in the mobile money vendor, which is struggling with a switch in strategy. Earlier this week, Monitise revised its FY 2015 revenue forecast downward.
Now the card firm says about Monitise: “it will reduce its shareholding over time while continuing to work with the company throughout the duration of its current commercial agreement”.
Visa Europe took a 14.4 per cent stake in Monitise in 2009 but has gradually sold down its stake. It is relying less on external input for its mobile tech, and doing more of its development inhouse.
Monitise’s shareholders are now headed by Omega Advisors (13.6 per cent) and Norges Bank (7.7 per cent), ahead of Visa Europe. Banco Santander holds a 4.9 per cent stake.
There is an irony in that Elizabeth Buse, a former Visa appointee to the Monitise board, is now the money vendor’s CEO.