JPMorgan sees ~$8 billion gain from visa exchange offer

(Bloomberg) — JPMorgan Chase & Co. said it expects to make an $8 billion accounting gain after finalizing its part of a deal with Visa Inc. allowing big banks to restructure their stakes in the payments giant.

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The plan, announced last year, had JPMorgan offering 37.2 million shares of Visa’s Class B-1 common stock in exchange for a combination of Class B-2 common stock and Class C ordinary shares, the bank said in a filing Monday.

Visa said in September that it was working to change a share structure put in place before its IPO in 2008. The unique structure – with three classes of shares – was designed to ensure that banks that owned Visa before The IPO would still be required to cover costs arising from the company’s long-running dispute with major U.S. retailers including Walmart Inc. and Target Corp. .

JPMorgan announced plans to donate approximately $1 billion of Class C common stock to the JPMorgan Chase Foundation, pre-funding its contributions to the institution for the next several years. The New York-based bank will count this as a non-compensatory expense, according to the filing.

Read more: Visa takes first step to allow big banks to sell $96 billion in stock

Visa said in a statement Monday that it accepted 240,677,470 shares of Class B-1 common stock tendered in the exchange offer.