Armaguard Wins $50 Million Backing From Banks.
Armaguard Wins $50 Million Backing – Armaguard has won $A50 million in backing from major banks and retailers to continue its cash-in-transit operations for 12 months.
The agreement includes a commitment by the parties to work together to develop an independent pricing mechanism to support a sustainable cash delivery business in the longer term.
The agreement comes after a series of roundtables led by the Reserve Bank of Australia to discuss the sustainability of the wholesale cash distribution system, which is being battered by the digitisation of currency and currency management globally.
“This deal will keep cash moving around the country and ensure it remains available to Australians wherever they live,” Australian Banking Association CEO Anna Bligh said.
“The 12-months of financial support also gives Armaguard the necessary time to restructure the business and realise the benefits from their merger with Prosegur. It also allows all parties to work through possible long-term solutions for sustainable cash access into the future.”
Armaguard Wins $50 Million Backing
Funders are ANZ, Australia Post, Coles, Commonwealth Bank of Australia, National Australia Bank, Wesfarmers, Westpac and Woolworths Group. Negotiations were led by the Australian Banking Association with authorisation from the Australian Competition and Consumer Commission.
“This is not a contest between the parties. There are no winners and losers here,” Linfox Armaguard executive chairman Peter Fox said.
“No other nation has major banks, retailers and key distribution companies working together to achieve a more efficient cash-in-transit industry. Armaguard is also leveraging the expertise of its other shareholder, Prosegur, which is one of the world’s leading cash companies.
“The parties recognise that the interdependency of the three elements of revenue support, efficiency and capital support must all be met. Armaguard has indicated its ongoing support to meet that objective including access to capital where appropriate.”
The agreement has been submitted to the ACCC for approval – you can read more about the Armaguard’s services here or read more SEN news here.
Armaguard Wins $50 Million Backing From Banks.
- The industry is economically viable
- There are significant improvements in productivity and efficiency
- There is a capacity to invest in the industry
- The highest standards of safety and security are maintained
- The public has access to cash at the lowest possible price consistent with the commitments of security and safety
- More efficient and predictable pricing is achieved through the development of an independent pricing mechanism.
“Armaguard Wins Bank Backing For 12 Months Operation.”
