Revolut reportedly has plans to simplify its ownership structure with investor SoftBank in a move understood to be part of efforts to obtain a long-delayed UK banking licence.
Those familiar with the matter told the Financial Times (FT) that Revolut and Softbank had been locked in negotiations for months, with the Japanese investor pushing for compensation for giving up its priority class of shares.
Sources added that the agreement in principle does not include any new issuance of “top-up” shares for SoftBank.
Revolut will only be granted a UK banking licence if it gets rid of preference shares held by investors including SoftBank, according to the FT report.
It added that a key condition from the Bank of England was for Revolut to collapse its six classes of shares into one as a condition for a full licence.
SoftBank’s Vision Fund 2 led an $800 million fundraising in July 2021 that valued Revolut at $33 billion.
According to the FT, Revolut chief executive Nic Storonsky previously appealed to SoftBank chairman and chief executive Masayoshi Son to help simplify the ownership structure in aid of obtaining its UK banking license.
The move follows Revolut’s recent announcement it would again delay the filing of its 2022 accounts.
A spokesperson told Reuters at the time that its 2022 audit and annual report, which were due on 13 September, would be announced “in due course”.
Latest News
-
HSBC launches payments management tool for businesses planning international growth
-
NatWest launches advent calendar to highlight festive purchase scam risks
-
Starling Bank poaches Adeel Hyder from TSB
-
HSBC sustainability chief quits amid strategic shifts
-
MPs publish damning report calling FCA 'incompetent' and 'dishonest'
-
BNY introduces new buy-side platform
The human firewall: Activating employees to safeguard financial data
As financial services increasingly embrace SaaS and cloud-based technologies, they face emerging threats to safeguard sensitive customer data. While comprehensive IT security measures are essential, the active involvement of employees across organisations is pivotal in ensuring the protection of sensitive data.
Building a secure financial future for instant payments: The convergence of ISO 20022 and fraud detection
The financial landscape is rapidly evolving its approach to real-time transactions under the ISO 20022 standard, and financial institutions must take note. With examples such as the accelerated adoption of SEPA Instant Credit Transfers in Europe and proposed New Payment Architecture (NPA) programme in the UK, the need for swift and effective fraud detection is more crucial than ever.
Data Streaming and Consumer Duty: Transforming customer experience in banking
Introduced at the end of July, the Consumer Duty is a game-changing new set of rules and guidance for financial services institutions in the UK, and companies must look to modernise their systems in adherence with it in mind to create the best customer experience possible.
From insight to action: Empowering financial institutions through advanced technology and collaborative information sharing
The use of Information sharing in enhancing financial crime prevention has been universally agreed as being beneficial. However no-one has been able to agree on how information can be shared safely without breaching data protection laws or having the right systems to facilitate this, Information sharing has re-emerged as a major consideration for financial institutions (FIs) ahead of the Economic Crime and Corporate Transparency Bill being made into law in the UK.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories