A London court ruling on Thursday has paved the way for a potential sale of Greek payments platform Viva Wallet after a valuation dispute between its founder and majority owner, Haris Karonis, and banking giant JP Morgan.
The two parties, who jointly control Viva Wallet, had been locked in a legal battle, with Karonis's WEREALIZE.COM (WRL) accusing JP Morgan of hindering the company's growth. However, the court dismissed these claims, stating that JP Morgan had no incentive to devalue the business.
The judgment clarifies how Viva Wallet should be valued, a crucial step towards a potential sale. JP Morgan acquired a 48.5% stake in the platform for $800 million in 2022, while WRL holds the remaining 51.49%. The agreement grants JP Morgan the right to purchase full control if Viva Wallet is valued below €5 billion ($5.4 billion) by July 30, 2025.
Both sides declared victory following the ruling. Karonis expressed satisfaction that the court recognized the need for a fair market valuation based on Viva Wallet's growth strategy, particularly its expansion in the United States.
JP Morgan, emphasizing its commitment to the partnership and Viva Wallet's continued success, described the judgment as a "great outcome." The bank believes the ruling provides a framework for fair and transparent valuations, potentially leading to a swift sale before the fintech M&A market weakens.
