Visa (NYSE:V) announced today that its wholly-owned subsidiary, Visa International, sold its 10 percent stake in Visa Vale issuer CBSS to Banco do Brasil and Bradesco.
Visa's proceeds from the sale are expected to be approximately US$100 million based on current exchange rates.
Visa International will maintain a strong commercial relationship with CBSS, focusing on benefits cards and prepaid cards. CBSS will continue to issue Visa Vale prepaid cards and Visa International expects no disruption to cardholder service as a result of this transaction.
Visa Vale products perform a unique service for Brazilian consumers, delivering the convenience, security and accessibility that have become synonymous with the Visa brand worldwide. Since Visa's investment in CBSS, the Visa Vale program has become the market leader.
"We have successfully delivered on our objective to grow the Visa Vale platform in Brazil through our strategic partnership with CBSS. This is an example of Visa's long track record in employing strategic investments to help drive growth in emerging categories," said Ruben Osta, Country Manager for Visa do Brasil. "Expanding the use of prepaid cards is an important part of our business strategy and will complement our plans for continued investment in Brazil, one of our fastest growing markets. We will continue our solid partnership with CBSS, while evaluating opportunities to grow the Visa Vale brand."
Visa's sale is subject to regulatory approval by Brazil's Conselho Administrativo de Defesa Economica.