Fifth Third Bancorp To Recognize Pre-tax Gain In Q4 On Vantiv Share Sale

(RTTNews) - Fifth Third Bancorp (FITB) announced the company expects to recognize a pre-tax gain of approximately $419 million (approximately $273 million after tax) during the fourth quarter related to the ownership interests included in Vantiv share sale and warrant actions.

On December 2, 2015, Vantiv (VNTV) conducted a secondary offering of 13.4 million shares of its Class A Common Stock on behalf of Fifth Third (FITB). Fifth Third agreed to cancel rights to purchase approximately 4.8 million Class C units in Vantiv Holding, LLC, the wholly-owned principal operating subsidiary of Vantiv, Inc., underlying the warrant in exchange for a cash payment of $200 million. Subsequent to the cancellation, Fifth Third exercised its right to purchase approximately 7.8 million Class C units underlying the warrant at the $15.98 strike price. Fifth Third will continue to have the right to purchase approximately 7.8 million Class C units in Vantiv Holding.

Upon the completion of the transactions, Fifth Third will beneficially own approximately 18.3% of Vantiv's equity through its ownership of approximately 35 million Class B units of Vantiv Holding, LLC. Fifth Third will no longer have consent rights that require its approval for certain significant matters related to Vantiv, Inc.