British financier seeks £245m takeover of De La Rue

In the United Kingdom, De La Rue, a prominent banknote printer, has recently been approached regarding a potential takeover deal valued at £245 million by financier Edi Truell. On Thursday, January 9, 2025, the firm experienced a significant surge in share prices, climbing over 10% following the news. Discussions were initially held last month regarding the possible sale of a 40% stake in the company to a consortium comprised of two of Mr. Truell's companies, namely Disruptive Capital GP and Pension SuperFund Capital. Then, De La Rue received a preliminary offer for the entire company at £1.25 per share. However, the company has now decided not to pursue the previous offer for the partial stake. De La Rue is currently evaluating the new offer from Pension SuperFund Capital, which remains contingent upon the company successfully finalizing a planned sale of its authentication division to Crane NXT for £300 million. This strategic move is part of De La Rue's effort to address ongoing financial challenges, which have been exacerbated by decreasing demand for cash following the pandemic. The firm had previously warned of potential issues regarding its ability to remain operational, particularly in light of an impending loan payment due in July of the following year. The planned transaction with Crane NXT is seen as a critical step in allowing De La Rue to clear the loan and mitigate a deficit in its former defined benefit pension scheme. Furthermore, the company has been involved in ongoing discussions regarding the potential sale of its currency division, which is a vital aspect of its business model. While these negotiations are in progress, De La Rue has indicated that there is no certainty that these proposals will materialize into concrete agreements. As the situation unfolds, it is clear that the parties involved have until February 6 to finalize their decision on whether to proceed with a formal bid or withdraw from negotiations altogether. The outcome of these discussions is likely to shape the future of De La Rue, which has a long-standing history of printing currency for the Bank of England and various central banks worldwide. Investors and analysts will be closely monitoring the developments in this high-stakes financial scenario as it may significantly impact both the banknote industry and broader financial sector in the UK.