A potential bidding war has emerged for De La Rue, a renowned British firm with a 200-year history of printing banknotes for the Bank of England. The company’s board recently recommended an all-cash offer from the US-based Atlas Holdings, causing De La Rue’s shares to surge by 16%.
The recommended offer from Atlas, valued at £263m, was described by the board as fair and reasonable, prompting positive investor response. However, City financier Edi Truell is reportedly contemplating a higher bid, which could escalate into a competitive takeover scenario.
Truell, a notable figure in pensions and private equity, is said to be mulling over a proposal of 132.17p per share. While De La Rue confirmed receiving no firm offer from Truell, the company remains steadfast in its recommendation of the Atlas deal.
De La Rue’s CEO, Clive Vacher, emphasized the benefits of the Atlas offer, citing continuity and stability across various aspects of the business. The potential sale to Atlas would involve delisting from the London Stock Exchange, subject to shareholder and regulatory approvals.
Established in 1813 by Thomas de la Rue as a printing business in Guernsey, De La Rue has a longstanding relationship with the Bank of England, operating the central bank’s printing facility in Essex. The company’s rich history includes printing banknotes featuring King Charles’ image.
Despite facing challenges such as declining cash use and competitive pressures, De La Rue has navigated various strategic moves, including the recent sale of its authentication division to Crane NXT. This divestment is expected to finalize by May 1.
The takeover saga began earlier in the year when talks with Disruptive Capital GP and Pension SuperFund Capital initiated. Subsequent expressions of interest prompted De La Rue to formalize a sale process, attracting multiple potential suitors.
Following the loss of a passport contract in 2020, De La Rue ceased banknote and passport production at its Gateshead plant. The company’s workforce, currently around 1,250 employees, is anticipated to undergo restructuring if the Atlas deal materializes.
Amid industry shifts and evolving market dynamics, De La Rue’s strategic decisions and potential acquisition indicate a pivotal moment for the historic company. The outcome of the bidding war and subsequent developments could reshape the landscape of banknote printing and financial security in the UK.
As De La Rue navigates this critical juncture in its storied history, the company’s legacy as a key player in banknote printing and its enduring partnership with the Bank of England underscore its significance in the realm of financial security and currency management.
🔗 Reddit Discussions
- TIL that because all US banknotes are the same size, making telling them apart hard-to-impossible for the blind, the US Bureau of Engraving and Printing provides an electronic device (the iBill Currency Identifier) that can identify the value of the bills free of charge.
- TIL that Nazi Germany printed lots of British banknotes and planned literaly drop them in British territory to increase inflation and collapse the economy of Great Britain
- South African Reserve Bank launches its new bank note and coin series (South Africa’s 4 decimal series) today! Banknotes now have the preamble of the constitution printed on the notes along with design upgrades. Coins have been completely redesigned. Links to SARB’s unlisted YouTube videos below