LONDON (dpa-AFX) - Shares of De La Rue plc (DLAR.L) were gaining more than 4 percent in the morning trading in London after the banknote maker Thursday confirmed discussions with a number of certain parties, who have made proposals in relation to, or expressed interest in, either of the Group's divisions.
In its strategic update, the company said the talks followed the Board's review of the firm's core strategic strengths and how best to optimise the underlying intrinsic value of the business.
The company now said that at this stage there can be no certainty that the interest received will result in a transaction, nor as to the terms of any such transactions.
A further announcement will be made in due course.
Regarding its trading, the company said there is no change to the previous guidance in relation to FY24 outturn. De La Rue's full year results are now expected to be announced in late July.
De La Rue also said it has reached agreement with two existing Government Revenue Solutions customers for multi-year extensions to their contracts. These are for three and five years respectively, for the supply of a digital tax stamp solution to track and trace excisable products.
In order books, De La Rue reported positive momentum in both Authentication and Currency divisions with a number of significant recent contract wins and renewals.
The total of substantial contract renewals that De La Rue Authentication has achieved within the last 12 months has reached four. The expected total contract values exceeds 150 million pounds. De La Rue's Authentication division now holds multi-year contracts with anticipated future revenues of over 350 million pounds, equivalent to approximately three and a half times FY24 total revenues.
De La Rue's Currency division continues to progress, and its order book increased to 239 million pounds at the end of March.
Clive Whiley. Chairman at De La Rue 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.'
In London, De La Rue shares were trading at 102.18 pence, up 4.27 percent.
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