According to reports, Bank of England supplier De La Rue has received a £246m takeover proposal, causing its shares to leap over 12 per cent.
The banknote manufacturer was given a conditional offer of 125p per share, roughly 25 per cent above its stock price prior to the announcement, by entities linked to private entrepreneur Edi Truell, as reported by .
This takeover bid is said to hinge on the successful £300m disposal of its authentication division to New York-listed Crane NXT, a deal disclosed in October. After facing a spate of challenges, the latest being compelled to postpone substantial pension contributions to its retirement fund, the sale materialised.
Last month, De La Rue reported that it had been approached by Truell and his associated firms Disruptive Capital GP and Pension SuperFund Capital, with an interest to purchase up to 40 per cent of the business at the same 125p rate. At the time, Truell informed the Financial Times he did not intend to acquire a majority interest in De La Rue, commenting that he had "been in conversations for some time" regarding an investment in the company.
Today, De La Rue announced that this partial offer is no longer being considered. Back in July, De La Rue had confirmed talks about selling part of the company — a decision that coincided with the disclosure of the printer’s annual results which had been delayed while seeking a suitable buyer.
The company posted a decline in earnings as expected, owing to "substantial trading difficulties", which resulted in an 11.3% drop in revenue from £350m to £310m. Conversely, its authentication division's revenue experienced a 12.5% increase, exceeding the company's target of £100m.
The De La Rue share price has surged over 30% in the past year, bouncing back from its all-time low in June 2023. According to the º£½ÇÊÓƵ Takeover Code, Truell has until 5pm on 6 February to submit a formal offer.
Sky News' Mark Kleinman initially reported the takeover news.
