De La Rue initiates formal sale process amid takeover interest

LONDON - De La Rue (LON:DLAR) plc, the British banknote manufacturer, has initiated a formal sale process after receiving preliminary acquisition interest. The company, which had previously announced on January 9, 2025, a potential cash offer from the PSFC Entities at £1.25 per share, is continuing discussions with these entities regarding a transaction that may result in a share buyback and control passing to the PSFC Entities.

The proposed transaction, which includes the issuance of a debt instrument to PSFC Entities and a share buyback, is contingent on several conditions. These include the successful sale of De La Rue’s Authentication division to Crane NXT, Co., an agreement with the De La Rue Pension Fund Trustees to derisk the pension scheme, and approvals from shareholders in line with the Takeover Code. However, there is no certainty at this stage whether the proposed transaction structure will proceed or if the share buyback will occur.

In addition to the PSFC Entities’ interest, De La Rue has received approaches from other third parties that could lead to possible cash offers. Consequently, the Board has unanimously decided to explore the sale of the company through a Formal Sale Process under the Takeover Code. Parties interested in the company, including the PSFC Entities, have agreed to participate in this process.

De La Rue is also engaged in discussions concerning its Currency division and is moving towards finalizing the sale of its Authentication division. The sale process will be managed by Deutsche Numis, which is also advising the Board on its obligations under the Takeover Code.

Interested parties are invited to express their interest in a potential transaction for De La Rue’s entire issued and to be issued ordinary share capital. The company expects expressions of interest to be submitted by March 31, 2025. The Takeover Panel has granted dispensations regarding the identification of interested parties and the standard 28-day deadline for submitting proposals.

The Board has the discretion to modify the sale process or terminate it at any time and will communicate any such changes as necessary. Shareholders have been advised that there is no certainty of any offers resulting from the formal sale process or the terms of any potential sale and should not take any action at this time.

This announcement, based on a press release statement, indicates that the offer period for De La Rue continues under the Takeover Code, and further announcements will be made as the situation develops.

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