De La Rue, the company responsible for printing banknotes for the Bank of England, has disclosed that it is currently in talks regarding a potential takeover. In a statement, the Basingstoke-based company revealed that it has received proposals and expressions of interest from multiple parties regarding its two divisions – authentication and currency.
This announcement comes after a thorough review of De La Rue’s operations, particularly in its authentication and currency divisions. The company is known for printing banknotes for central banks globally and most recently collaborated with the Bank of England on the production of new banknotes featuring the King’s portrait, set to be released on 5 June.
While the company confirmed that discussions are ongoing, it also emphasized that there is no certainty that a deal will be reached. Chairman Clive Whiley stated, “Since my appointment a year ago, the board has considered a broad range of potential strategic alternatives, including transactions with multiple parties involving the combination or sale of our divisions. We can confirm that discussions with relevant parties are progressing, and we plan to provide further updates during our full-year results announcement in July.”
In other business news, De La Rue has reaffirmed its previous financial guidance for the year ending in March. The company also reported positive momentum in its divisions, with recent contract wins and renewals contributing to its success. Additionally, De La Rue announced contract extensions with two existing government customers, securing future revenue of over £350 million from multi-year agreements.
Following the news, shares in De La Rue saw an 8% increase in early trading on Thursday. The company, with a 200-year history, remains a significant player in the banknote printing industry and continues to make strides in its operations.
