Monitise rocked by Visa’s stake-sale move

Mobile payments firm Monitise’s shares today fell 26%, wiping more than £200 million off its value, after leading shareholder Visa said it was “considering its options” and looking to sell its stake.

The credit-card giant wants to cut its 5.5% holding as it has a policy of investing in early-stage companies and selling down over time.

Visa is spending more on “in-house capabilities” and “lessening its dependence on external mobile development resources” — a worry for Monitise if others do the same.

Loss-making Monitise has been a stock-market darling during the smartphone boom, but investors have fretted as the company twice downgraded forecasts this year.

Monitise recruited ex-Visa executive Elizabeth Buse as joint chief executive in June and founder Alastair Lukies, previously sole chief executive, stepped back from some duties.

Lukies said Visa has been a “huge support”, stressing the companies have an “ongoing alliance”. He added Monitise should make a profit before exceptional items in 2016.