Transport Mutual CEO John Kavalieros
Transport Mutual Credit Union has announced its decision not to participate in the proposed voluntary sale of 50 per cent of its shares in Cuscal.
“Cuscal was created by the Australian credit union movement in 1997, and today remains a renowned wholesale service and payments provider to the majority of Australian credit unions. It has suggested the proposed voluntary sale to all existing shareholders ahead of its upcoming Initial Public Offering,” the credit union said in a statement.
"We're wary of the shift that might ensue post-IPO, a shift that could see our customers ultimately facing increased costs and a potential dilution of the very values that set credit unions apart," TMCU CEO John Kavalieros said.
“We believe introducing a new class of stakeholders through an IPO could potentially challenge Cuscal's longstanding dedication to mutual values.
“The core strength and advantage of Cuscal's service delivery over the decades have been its unwavering focus on mutual values, resulting in benefits for Credit Unions and their members alike.
“Introducing a new class of stakeholders, driven by different priorities, could jeopardise this dynamic.”
Cuscal is counting down to an IPO and ASX listing by the end of November. The AFR reports Cuscal plans to raise up to A$378 million in what’s slated to be the year’s second-largest initial public offering.
“TMCU has been a committed shareholder in Cuscal, relying on its services to access the payments network and to issue products under license such as Visa cards,” Kavalieros said.
“This enduring partnership is grounded in mutual values and a shared commitment to serving and benefiting the broader Credit Union community and its members.
"Our primary commitment remains with our members, ensuring they continue to receive the best products and services, and value," he said.
"Our decision is in alignment with that commitment and the values we've upheld over the years. We remain committed to being a values-driven organisation with the interests of its members always the highest priority.”