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American Express to sell certain Australian currency exchange assets

JB Financial Group Ltd. struck an agreement to acquire certain Australian currency exchange assets from American Express Co.

The subsidiary of Australia's Henry Morgan Ltd. entered into a nonbinding commercial term sheet to acquire specific parts of the retail currency exchange business and the premises of Sydney-based American Express Wholesale Currency Services Pty. Ltd., according to a June 23 filing.

It will also be granted rights to operate American Express's 64 retail foreign exchange outlets in six Australian territories. American Express Wholesale Currency Services will also assign JB Financial a lease over some secured vault premises, as well as the rights and obligations attached to the occupation licenses for the retail outlets.

In return, JB Financial will pay an amount equal to the foreign and Australian domestic denominated currency stock held at the retail outlets, and offer to hire approximately 140 American Express staff at the outlets.

The cash funding costs of the transaction are estimated at A$26.9 million, along with additional lease and human resources commitments of around A$8.6 million.

The foreign exchange retail network acquisition is expected to deliver immediate scale to JB Financial's existing retail foreign exchange division.

Completion of the agreement is expected to take place in stages from early July, subject to conditions such as relevant approvals.