Monitise Shares Dive as Visa Europe Plans Stake Sale
By Dow Jones Business News, July 08, 2015, 04:07:00 AM ED
Read more: http://www.nasdaq.com/article/monitise-shares-dive-as-visa-europe-plans-stake-sale-20150708-00077#ixzz3fIHKa2R5
LONDON--Shares in Monitise PLC (MONI.LN) slumped after the U.K. mobile banking technology company said payment cards company Visa Europe plans to reduce its 5.3% stake in the firm, the latest blow for the former darling of the U.K. technology scene.
Visa Europe "will reduce its shareholding over time while continuing to work with the company throughout the duration of its current commercial agreement," Monitise said.
The agreement, which involves Monitise helping Visa Europe develop payments and shopping services for mobile devices, runs until March 31.
Visa Europe's decision mirrors a similar one taken last year by Visa Inc. (
), a separate U.S.-based entity, which prompted a sharp fall in Monitise's share price.
The company has also downgraded its revenue expectations several times and is now well short of the valuation above 1 billion pounds ($1.56 billion) it sat at last year.