UK-based fintech company Revolut has agreed to simplify its ownership structure with investor SoftBank, removing one obstacle to win a long-delayed banking license in its home market.
In brief:
-Revolut and SoftBank had been locked in months of negotiations, with the Japanese investor demanding stiff compensation for giving up its priority class of shares, the report said.
-The fintech startup can only win a UK banking license if it gets rid of preference shares held by investors including SoftBank.
-The Bank of England had instructed Revolut to collapse its six classes of shares into one as a condition for a full license which the company first applied for over two-and-half years ago
What does this mean?
According to the report, other investors such as Tiger Global Management, venture capital firm TCV, Balderton Capital and Ribbit Capital have all either agreed to transfer their shares into a single class, or are in final talks to do so.
