De La Rue completes £100m equity raise
Tuesday, July 7, 2020
De La Rue has completed its £100m capital raise through the placing of new shares.
The fresh funding will help to fund its turnaround plan and investment in additional polymer production, as well as strengthening the group’s balance sheet.
Chief executive Clive Vacher said the successful share placing also removed a material uncertainty reported in its year-end results last month, which related to the shareholder approval required for the equity raise.
The plans were approved at a general meeting held yesterday (6 July).
"I am very pleased that the company's shareholders voted so overwhelmingly in favour of all the resolutions required to allow us to complete our £100 million equity raise at today's shareholder meeting,” Vacher said.
"The equity raise will provide the company with the financial and operational flexibility to ensure the success of the Turnaround Plan which we announced earlier this year. With this capital we will be able to strengthen our balance sheet, reduce our costs and invest in the exciting growth opportunities we see in Authentication, polymer banknote production and security features. I firmly believe this will drive improved returns and create long-term value for our shareholders."
The turnaround plan involves the end of banknote printing at De La Rue’s Gateshead site, with a further loss of skilled print jobs at the facility as a result.