Worldpay dual listing ‘too expensive’

WORLDPAY has warned British shareholders that it would be too expensive for it to have a dual listing in London and New York once it completes the £7.7bn tie-up it agreed with US rival Vantiv earlier this month.

New York-listed Vantiv plans to delist Worldpay from the London market following the deal, despite presenting the transaction to investors as a merger. Almost 15pc of Worldpay’s shareholders are unable to hold US shares, presenting a problem because Vantiv is partly paying in stock.

As a result, the plan to delist Worldpay has angered some investors who believe they will not be able to profit from the fruits of the tie-up.

British institutions that can hold the shares are also worried that once Worldpay is delisted there will be little incentive for management of the combined company to engage with its UK investors.

To placate investors, bankers on the deal are instead examining the case for a secondary listing in London and a primary listing in New York. While a dual listing involves having two separate legal entities, a secondary listing does not and there are tax differences between the two structures.