Changes in the Riksbank’s companies – letter of intent with Securitas, sale of Tumba Bruk
Contact: Leif Jacobsson, Head of Communications, tel +46 8 787 04 14, +46 70-554 7756, or Björn Hasselgren, Head of Secretariat of Executive Board, tel +46 8 787 04 72
The Riksbank has signed a letter of intent with Securitas regarding a transfer of the majority of the commercial arm of the Riksbank's cash management, Pengar i Sverige AB, to Securitas Värde AB. The Riksbank has also finalised the sale of Tumba Bruk to Crane & Co Inc.
"The decisions entail an important step towards concentrating the Riksbank's operations on its core objectives - price stability and financial stability," comments Governor Lars Heikensten. "We are selling the major part of our operational cash management activities and our commitments in the production of banknotes, and the companies will also have professional owners."
Cash management
The aim is for Securitas Värde AB to take over the main part of the activities in Pengar i Sverige AB, including client undertakings, and also to offer the majority of the company's employees employment at Securitas Värde AB.
The aim is to sign a final deed of transfer no later than February 2004. The purchase sum will then be finalised on the basis of book values. The deal is conditional on the approval of the Swedish Competition Authority.
Operations in Pengar i Sverige AB began in 1999, following a decision by the General Council of the Riksbank in 1998. The purpose was to concentrate the Riksbank's operations on its core business and to achieve a more rational structure in the cash market. Prior to being converted into a company, the activities were conducted at the Riksbank. The company currently works with the handling of daily takings, filling cash machines and cash-in-transit for banks and the retail trade. The company has 350 employees and a turnover of SEK 250 million for this year.
The Riksbank's company Svensk Kontantförsörjning AB, whose responsibilities include the Riksbank's cash stocks, is not affected by the sale.
The Riksbank has begun an investigation, which will propose measures to further improve efficiency in cash management. The banks and cash-in-transit companies are being invited to participate in a consultative group. The investigation is due to be complete in April 2004.
Tumba Bruk
Following an agreement reached in 2001, Crane & Co Inc took over management responsibility for Tumba Bruk on 1 January 2002, whereby the latter company's name was changed to Crane AB. According to this agreement, the Riksbank remains owner of the company until the end of 2003.
In accordance with a final deed of transfer, Crane & Co Inc is now acquiring the operations for USD 5 million, which corresponds to approximately SEK 36 million. According to the original agreement, the purchase sum was to be US 12-18 million and was dependent on the profit situation in Crane AB. The purchase sum that has now been agreed is not dependent on the company's profits and is thereby a certain source of revenue for the Riksbank.
As previously agreed, the Riksbank will take responsibility for the operating losses during 2002 and 2003, as well as for some of the investments made. The Riksbank's total financial undertakings for these years are estimated to be SEK 160-170 million. Crane AB consists of the paper mill for banknote paper and the banknote printing works. The company, which has 250 employees, supplies Swedish banknotes and also has substantial exports of mainly banknote paper.
The Riksbank has transferred, with the approval of the Riksdag (the Swedish parliament), the parts of the area designated as cultural heritage buildings to the National Property Board. The Riksbank has also decided to fund a paper mill museum, where Tumba Bruk's 250-year history will be on display to the general public. The museum will be run by the Royal Coin Cabinet and will open in 2005.
The Riksbank's costs
Up to and including the first half of 2003, the Riksbank's capital injections to Pengar i Sverige AB and Svensk Kontantförsörjning AB have totalled SEK 770 million. Approximately half of these relate to operating losses and half to restructuring costs. These costs should be seen in the light of the annual cost of SEK 60-70 million when the operations were been conducted at the Riksbank. The Executive Board has decided to provide an additional capital injection of SEK 125 million to cover, among other things, the close-down costs during 2004.
A press conference with Governor Lars Heikensten, Deputy Governor Irma Rosenberg and Chairman of the Board of Svensk Kontantförsörjning AB and Pengar i Sverige AB, Gunnar Bäckman will be held today at 11 a.m at the Riksbank, Brunkebergstorg 11. Press cards must be shown.
The press conference will be broadcast live on the Riksbank's website, http://www.riksbank.se/
