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De La Rue activist investor calls for sale or break-up of banknote printer - FT

Published 01/28/2022, 11:06 AM
Updated 01/28/2022, 11:10 AM
© Reuters.

(Reuters) - Crystal Amber Fund, one of De La Rue's largest investors, has called on the British banknote printer to consider a sale or break-up after its profit warning, the Financial Times reported on Friday.

Richard Bernstein, who heads Crystal Amber, predicted that a sale of De La Rue's authentication division alone would generate more than the company was worth following the stock's 25% slump on Monday, according to the report.

De La Rue's shares slumped 25% on Monday after the company delayed the delivery of its turnaround plan by a year and warned annual profit would miss market expectations, as it struggles with coronavirus-related staff absences and supply chain issues.

The activist investor, the third-largest shareholder in the company with about a 10% stake, said in a monthly report on Friday that the currency printing industry needed consolidation.

It added that De La Rue would be the subject of a takeover bid from one or more competitors in the coming months.

FT quoted De La Rue Chief Executive Officer Clive Vacher as saying the board had confidence in the group's strategy. He did not comment on the takeover speculation.

Crystal Amber did not immediately respond to a Reuters request for comment.

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