De La Rue, the company responsible for printing banknotes for the Bank of England, has announced that it is currently in takeover talks. The news comes after a strategic review of the company’s authentication and currency divisions based in Basingstoke.
The company, which prints banknotes for central banks worldwide, recently collaborated with the Bank of England on new notes featuring the King’s portrait. These new banknotes are set to enter circulation on 5 June.
Chairman Clive Whiley stated that the board has been exploring various strategic alternatives over the past year, including transactions with multiple parties that could involve the sale or combination of the company’s divisions. Whiley emphasized that there is no certainty that the ongoing talks will result in a deal.
Despite the uncertainty surrounding the takeover talks, De La Rue has reaffirmed its previous financial guidance for the year to March. The company reported positive momentum in its divisions, citing recent contract wins and renewals.
Additionally, De La Rue announced contract extensions with two government customers, boosting future revenue at its authentication business to over £350 million from multi-year contracts. Following the news, shares in De La Rue surged by as much as 8% in early trading on Thursday.
The outcome of the takeover talks remains to be seen, with further updates expected to be provided at the time of the company’s full-year results in July.