De La Rue: Banknote maker in takeover talks

The company which prints banknotes for the Bank of England has revealed it is in takeover talks.

De La Rue said it was in discussions with "a number of parties who have made proposals in relation to, or expressed interest in, either of the group's divisions".

It comes following a strategic review of the Basingstoke-based company's authentication and currency divisions.

The firm prints banknotes for central banks around the world.

It recently collaborated with the Bank of England on new banknotes featuring the King's portrait, which will enter circulation on 5 June.

However, De La Rue stressed there was no certainty the talks would result in any deal.

Chairman Clive Whiley said: "Since my appointment a year ago, the board has considered a broad range of possible strategic alternatives including transactions with multiple parties which may involve a combination with, or the sale of, the group's divisions.

"The board confirms that the discussions with the relevant parties are advancing, and we expect to update further at the time of the full-year results in July."

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It came as the company said it was holding firm with its previous financial guidance for the year to March.

De La Rue added it had seen "positive momentum" in its divisions, with a number of "significant recent contract wins and renewals".

The 200-year-old company also said it had signed contract extensions with two existing government customers, taking future revenue at its authentication business to more than £350m from multi-year contracts.

Shares in De La Rue rose as much as 8% in early trading on Thursday following the announcement.