Atlas Holdings targets historic acquisition of De La Rue
- De La Rue is in advanced talks with Atlas Holdings for a 130p-a-share takeover.
- If successful, this would end nearly 80 years of De La Rue being a publicly listed company.
- The deal is a response to the company's ongoing financial struggles, aiming to maximize shareholder value.
In the United Kingdom, De La Rue, a historic company that has been in operation for 212 years, is on the verge of a significant takeover. The company has been engaged in advanced discussions regarding a 130p-a-share proposal from Atlas Holdings, a buyout firm based in the United States. Should the deal proceed, it would mark the first time since De La Rue's inception that it would be privately held and not listed on the London Stock Exchange, where it has been a public company since 1947. Atlas Holdings, which specializes in acquiring firms across various sectors, is expected to finalize a recommendation for the deal shortly. Reports indicate that leading investors within De La Rue have been approached to give irrevocable commitments to accept the proposal. A decision is anticipated to be publicly announced as early as Tuesday morning, reflecting a swift progression in negotiations and a potential shift in ownership. Previously, De La Rue's stock had suffered a significant decline, dropping below 50p at one point in mid-2023, but has shown recovery, closing at around 112p recently. The proposed offer indicates a robust premium over the current stock price, gathering interest from stakeholders who have endured years of corporate instability within the company. Financial observers note that De La Rue has struggled with its balance sheet, facing challenges including profit warnings and operational difficulties in international markets, prompting a review of strategic options. In addition to the offer from Atlas Holdings, it was disclosed that De La Rue is in the process of divesting its authentication division to Crane NXT for £300 million, with funds earmarked for debt repayment and pension scheme adjustments. This broader restructuring comes amid a history of corporate missteps that have plagued the company, leading to engagements with external financial advisors to stabilize financial standing. With the announcement of a proposed takeover imminent, stakeholders are closely watching for its potential implications on the future direction of De La Rue and its role in the currency printing sector.