Fifth Third Bancorp Expects $81 Mln Net Gain From Vantiv Share Sale

(RTTNews) - Vantiv Inc (VNTV), a provider of electronic integrated payment processing services, recently conducted a secondary offering of 5.78 million shares of Class A Common Stock being sold on behalf of Fifth Third Bancorp (FITB).

Upon the settlement of the transaction, Fifth Third expects to recognize a pre-tax gain of about $125 million (about $81 million after-tax) during the second quarter of 2014.

The stock sale will result in a near 12 percent reduction in Fifth Third's stake in Vantiv.

Fifth Third said the purpose in the sale is to continue the process of monetizing the remaining portion of its stake in Vantiv in a considered fashion over time.

Following the settlement, Fifth Third would continue to hold about 43 million Class B units of Vantiv Holding LLC, which may be exchanged for Class A common stock of Vantiv Inc on a one-for-one basis, as well as a warrant that is exercisable and exchangeable into Vantiv Inc Class A Common Stock.

Fifth Third would have a remaining economic interest of about 22.8 percent of Vantiv's future earnings.

Prior to the transaction, the carrying value of Fifth Third's investment in Vantiv Holding LLC was $437 million as of March 2014.