De La Rue chairman resigns in dramatic victory for activist investor who has been clamoring for his head for months
De La Rue’s chairman has resigned in a dramatic victory for the activist investor who has been clamoring for his head for months.
Kevin Loosemore’s departure from the banknote printer was announced days after a disastrous profit warning that saw the share price of the 210-year-old company plummet.
That prompted investor Crystal Amber — the company’s third-largest shareholder with a stake of nearly 10 percent — to call for “immediate change.”
Other investors who had previously backed Loosemore fell behind Crystal Amber and Loosemore decided to pull out rather than face a humiliating vote, the Mail understands.
De La Rue said in a terse statement released shortly before the stock market close that he had resigned “to draw a line under recent speculation surrounding the company’s leadership.”
Resignation: Kevin Loosemore’s departure from the banknote printer was announced just days after a disastrous profit warning
Loosemore – who started as chairman in October 2019 – will leave his position on May 1 and an “accelerated recruitment process” has started to find a successor, the company said.
The aim is to appoint a new chairman on May 2 – in less than three weeks – or “as soon as possible thereafter”, the statement said.
De La Rue said private equity veteran Pepyn Dinandt, who has been nominated for the role by Crystal Amber, would be a candidate in the process. Shareholders can vote on the new appointment at the group’s annual general meeting in July.
Richard Bernstein, founder of Crystal Amber, told the Mail: “The focus is now on De La Rue’s recovery – and the strategic value of the company is very substantial.”
The stock closed 2.4 percent lower.
Victoria Scholar, head of investments at broker Interactive Investor, said: ‘This is clearly a win for Crystal Amber, who have been desperately trying to oust Loosemore for some time.’
She said the company needed “a drastic shake-up to restore investor confidence.”
Crystal Amber had been publicly calling for Loosemore’s departure since November.
There is likely to be speculation over the future of De La Rue CEO Clive Vacher once Loosemore’s replacement takes over the reins.
Earlier this week, the company warned that earnings for the year through the end of March would fall short of market expectations and also cut its 2023-24 earnings outlook.
The group blamed a slump in demand for notes, which it said was at its lowest level in 20 years.
That followed an earlier profit warning in November. It has struggled for years, losing a lucrative contract in 2018 to print Britain’s post-Brexit passports.