Media Release Sale of Securency
The Bank has agreed to sell its 50 per cent shareholding in Securency International Pty Ltd to Innovia Films, the UK-based film manufacturer and current 50 per cent joint venture partner in Securency.
The sale of the Bank's interest in Securency is in accordance with the Bank's long-standing intention to exit from the joint venture once Securency had established itself as a viable long-term supplier in the international market for banknote substrate. A sale process was commenced in late 2010, with the Bank and Innovia announcing their intention to undertake a joint sale of Securency. Subsequently, Innovia advised that it no longer wished to sell its 50 per cent shareholding and made an offer to purchase the Bank's shares, in a manner consistent with the Joint Venture Agreement. Macquarie Capital advised the Bank throughout the process.
Under the terms of the sale, the Bank will receive initial payments of approximately $65 million for its shares, which exceeds the value of the Bank's investment in Securency in the Bank's 2011/12 financial accounts of $54 million. Additional payments may be made to the Bank over following years, including if Securency exceeds certain earnings benchmarks.
Note Printing Australia Limited (NPA), which is the printer of Australia's banknotes, will remain a wholly-owned subsidiary of the Bank. As part of the sale of Securency, NPA will enter into a long-term supply contract with Securency for the provision of polymer substrate for Australia's next generation of banknotes. The use of polymer substrate means that Australia's banknotes are highly durable and among the safest and most secure banknotes in the world.
The Bank has also today released an independent review of the oversight arrangements in relation to NPA and Securency.