Reserve Bank of Australia sells subsidiary to PE-backed Innovia

In a statement, RBA said the sale is in accordance with the its intention to exit the joint venture once Securency had established itself as a viable long-term supplier in the international market for banknote substrate.

The sale process had began in late 2010, with RBA and Innovia announcing their intention to undertake a joint sale of Securency. Innovia then decided it no longer wanted to sell its 50% shareholding and made an offer to purchase the RBA's shares, consistent with the joint venture agreement. 

Officials from Securency and Note Printing Australia (NPA), RBA's other subsidiary, were charged by Australian police in 2011 with offences relating to bribery in Vietnam, Malaysia, Indonesia and Nepal in relation to securing international contracts for the sale of polymer note technology, which adds to the durability of currency in circulation. RBA said today it has released an independent review of its governance in relation to Securency and NPA.

Under the terms of the sale, RBA will receive initial payments of approximately A$65 million ($67.3 million) for its shares, which exceeds the value of the Bank's investment in Securency in RBA's 2011-2012 financial accounts of A$54 million.

RBA added that additional payments may be made over following years if Securency exceeds certain earnings benchmarks. Macquarie Capital advised the bank throughout the process.

NPA, which is the printer of Australia's banknotes, will remain a wholly-owned subsidiary of the RBA. 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. 

 

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• Topics
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