De La Rue Share Discussion Threads

[she-ra] 20/11/2024 16:36

Someones playing a game so they can close their short at their preferred price. We know what you are doing with these tiny sized high frequency trades

[argylerich] 19/11/2024 11:23

Agree re currency best fit. I guess it depends on the buyers' brand strength?
We await with interest. In the meantime it's the best share I have tucked in the bottom drawer.

[kooba] 19/11/2024 11:18

They could sell the rights to the name in business with currency and just rename the remaining listed cash vehicle to be liquidated ..not sure there would be any issue if they find the right buyer at the right price that could deliver the monetised 150p target CA are looking for.

[kooba] 19/11/2024 11:16

I think the brand is valuable and far more synonymous with currency than authentication globally ..crane already have a strong reputation in currency as well as authentication so probably not an issue in terms of their branding. I imagine in currency a buyer would be keen to retain the brand...but who knows it is not as recognised as the player it once was?

[argylerich] 19/11/2024 10:43

Interesting thought which division would take the Brand? Interesting question for the Board. Surely it is valuable.

[mickyl] 19/11/2024 10:38

Kooba would that mean the brand would die? Interested parties would surely want the prestige of the name in any purchase?
Having said that the likely purchasers will already have strong branding.

[kooba] 19/11/2024 10:33

On a Davy initiation note they gave the date as 28th Nov.Seems CA has got much in its activism right now..the appointment of the new Chair initially stabilised a very unstable ship and is now driving delivering value for shareholders from a situation that had their accounts qualified and looked in serious risk of breaching covenants.Not a great outcome for longer term holders after the declining currency markets and loss of market share but certainly appears there will be a far better outcome than might have been expected when the price hit 30p only 18 months ago.Hopefully more good news in the pipeline.

[argylerich] 19/11/2024 09:44

That's certainly what CA are angling for kooba

[kooba] 19/11/2024 09:28

Interim results before the end of the month will update...from the tone of previous news it appears that there is good interest in currency but a firm and reasonable offer came in for authentication first. Hopefully some further clarity on how this pans out , it may be a buyer is interested in just taking the currency division clean leaving the listed entity as a cash shell to return cash to shareholders once the pension liability fully sorted?

[argylerich] 19/11/2024 08:00

she-ra, I didn't say that the 2 are mutually exclusive, just looking at the likely "fruition" timetable for the best share price :-)

[she-ra] 18/11/2024 18:04

Yes but it doesn't stop an offer being made for the currency in the meantime. Any agreed offer for the rest of the company will not be completed immediately.

[argylerich] 18/11/2024 15:32

she-ra 6 months is more the timeline for the Authentication sale

[she-ra] 18/11/2024 15:27

I think in the next 30 days we will hear something about currency. No way 6 months.

[mickyl] 18/11/2024 15:12

I notice Day have set a target of 160p

[argylerich] 18/11/2024 10:30

Don't think we're going to be seeing anything too rapid here, 6 months minimum for fruition at least I think. Fingers crossed that the excellent price obtained for Authentication feeds across well to Currency interest.

[mickyl] 15/11/2024 17:57

Thanks for the feedback. I’ll hang on to closer £1.50
CA seems to think £1.50 but is this just the enterprise value and doesn’t take into account of any premium due to the history and prestige of owning the brand. Let’s hope for a bidding war.

[she-ra] 15/11/2024 15:44

I don't see why a £2 offer couldn't come through. This is going to be a highly profitable debt free business.

[argylerich] 15/11/2024 13:09

Mickyl if the target is £1.50 then I'd be aiming for within 5% before bailing.

[farrugia] 15/11/2024 12:57

Crystal Amber holds 16.43 per cent of this. They want to sell at a 'good' price so if there's a deal to be had it should hopefully materialise.

[mickyl] 15/11/2024 12:16

Certainly looks that way. Purchases above £1 are what we need to drive the price on.
I wonder how long before we start to here about the trade buyers of currency division. It’s been going on behind the scenes for a while.
Alternative to sell is to keep and build the business as Jensen10 said. Look at the Hungarian company ANY security print whose shares increased by 135%.
Do you trust the management to make a success of it or squander the free cash they will be sitting on?
I love to stick with it but I think £1.25 to £1.30 and i’m out. If it ever gets there.

[argylerich] 15/11/2024 10:40

Seems to be less auto-trades today and more retail activity?

[jensen10] 13/11/2024 15:21

Fair point W. A buyback theoretically has no impact on the share price as all you are doing is converting cash to treasury shares which you cancel. So less shares outstanding vs less cash. Any smart ideas how CRS can sell their shares without a takeover of the currency unit?

[wbodger] 13/11/2024 14:13

That's not how a tender offer works. CA have one sixth of the Shares, about 33 million, so they would be offered (like everyone else) £1.50 a share for 25% of their holding. Ie £1.50 for each of 8,250,000 shares (a quarter of 33 million), and everyone's remaining shareholding including CA's retained 24,750,000 would continue to trade, probably at a much lower price because (using your figure) £75 million of DLAR's cash had been spent.

CA would still own one sixth of DLAR's Market Cap, and still have exactly the same influence on the Board.

Your suggestion is a method of favouring one shareholder over the others. Not blooming' likely.

[jensen10] 13/11/2024 09:20

Any thoughts on appointment of new corporate broker Davy? Investec could not even work out net cash balance after sale of authentication saying it was net 60mm. CRS calculate 140mm which appears much closer. Davy seem to be big on buybacks in the mid cap sector....

[jensen10] 12/11/2024 10:19

If I was DLAR management I would seriously consider using some of the net cash of 140mm to launch a tender offer/buyback for up to 25% of the company shares at 1.50. would cost approx 75mm. Allows CRS to exit and clears the overhang. Left with a company with net cash of 65mm. No debt. No pension liability. Largest order book in 10 years. Could be a nice dividend paying stock to hold and worth more than 150mm