world's largest consumer credit card payments operator
Visa International, has announced plans to restructure
its organization. Under the restructuring, Visa will
create a new public global corporation called Visa Inc
and then offer its share in an initial public offering.
products currently generate more than $4 trillion in
sales volume theroughout the world.
May, rival MasterCard went public with an IPO and since
then its shares have soared from an opening day price
of $46 to the extent that several analysts downgraded
the stock as overvalued.
an association owned by banks, had initially said it
would not follow MasterCard's lead and instead sought
to add more independent directors to its board and modify
its operating rules.
the proposed restructuring unveiled this week, Visa
Inc. will be created through a series of mergers involving
Visa Canada, Visa USA and Visa International, which
includes the operating regions of Asia Pacific, Latin
America and the Caribbean, and Central and Eastern Europe,
Middle East and Africa.
reorganisation will result in a new stock corporation
owned by Visa members. After the mergers are complete,
the global corporation intends to begin the IPO process
and list its shares on a major stock exchange.
is expected that a majority of the shares in the reorganised
company will be sold to the public.
expects the proposed restructuring will position the
company will position for the future and increas its
access to capital.
a part of this restructuring, Visa Europe will remain
a membership association, owned and governed by its
European member banks, and become a licensee of Visa
boards of directors of Visa's six regions and Visa International
approved the recommendation for the restructuring. The
restructuring is subject to approval by and regulatory