Top financier Edi Truell launches £245 million bid for troubled banknote printer De La Rue
British financier Edi Truell has launched a £245 million attack on banknote firm De La Rue.
Pension and private equity entrepreneur Truell has offered £1.25 per share for the entire company, having previously approached 40 per cent of the company at that price.
The City veteran has until 5pm on February 6 to make a strong offer for the 212-year-old company or he will walk away.
A deal would see the Hampshire company leave the London stock market after 78 years, which would be a major blow to the stock market.
Truell, 62, is known for his aggressive dealmaking and oversees billions of pounds through his private equity fund.
He founded and led the buyout firm Duke Street Capital from 1998 to 2005 and currently owns Disruptive Capital.
All-in: Edi Truell (pictured) has offered to pay £1.25 per share for all of De La Rue, having previously made an approach for 40% of the company at the same price
He was also special economic adviser to Boris Johnson when he was mayor of London.
De La Rue prints banknotes for more than half of the world’s central banks, including the Bank of England.
It also printed newspapers, playing cards, stamps, greeting cards and passports, and listed in London in 1947.
A consortium consisting of Disruptive Capital GP and Pension SuperFund Capital was in discussions last month about the purchase of a 40 percent stake in De La Rue.
The group has now submitted a potential takeover bid with a premium of almost 22 percent compared to Tuesday’s closing price. Shares rose 8.3 percent, or 85p, to 111p yesterday.
The company told shareholders it was “considering its options.” The offer for part of the company is no longer being considered, De La Rue said.
The country is trying to strengthen its finances after a surge in contactless payments since the Covid pandemic.
Orders have increased, but the country is still struggling to reduce debt and reduce the pension deficit.
A bid from Truell is conditional on the successful, previously announced sale of De La Rue’s authentication business to US technology company Crane NXT for £300 million, the company said.
The company is also considering the sale of its foreign exchange division and confirmed discussions were underway.
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