, and disclosed proceeds they stand to gain from MasterCard Inc.'s planned of a 92.4% stake inVocaLink Holdings Ltd.
Barclays, one of VocaLink's fivelargest shareholders with a 15.18% stake, will sell the majority of itsshareholding to MasterCard for £104 million, with a potential for a furthermaximum earn-out of £29 million if VocaLink meets performance targets. Thetransaction will reduce Barclays' stake in the payments systems firm to about1.5% and result in a pro forma common equity Tier 1 ratio increase of about 3.4basis points on completion.
RBS, which holds a 21.4% stake inVocaLink, said it expects to report an initial pretax gain of about £150 millionon completion of the transaction.
Co-op Bank, meanwhile, stands togain cash proceeds of approximately £25.1 million and an earn-out considerationof up to £3.2 million, payable in 2019. The pro forma impact ofthe sale proceeds would have increased the lender's CET1 ratio as of March-endto 14.4% from 14.1%, had the transaction completed March 31.
Completion of the acquisition,which is subject to certain conditions precedent and regulatory approvals, isexpected to take place at the latest before the end of the second quarter of2017.