RCS - Crystal Amber Fund - Statement regarding De La Rue plc GM

Crystal Amber FundAnnouncement

02/12/2022 17:15

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RNS Number : 5032I  Crystal Amber Fund Limited  02 December 2022

Reach announcement*

 

2 December 2022

 

CRYSTAL AMBER FUND LIMITED

("Crystal Amber", the "Company", or the "Fund")

 

Statement regarding De La Rue plc ("De La Rue") general meeting

 

On 27 October 2022 De La Rue announced that it would be convening a general
meeting on 2 December 2022 where it would put to shareholders whether Mr
Loosemore should continue as Chairman. Crystal Amber is De La Rue's second
largest shareholder, owning just under 10 per cent of De La Rue's issued share
capital. On 9 November 2022, Crystal Amber published an open letter to De La
Rue shareholders on its website.

 

Crystal Amber notes De La Rue's announcement that at its general meeting held
earlier today, Mr Loosemore was re-elected as a director.

 

Crystal Amber points out the following:

 

1.    Crystal Amber did not requisition this meeting, the Board of De La
Rue convened it. Crystal Amber is not aware of another company where a board
has effectively requisitioned a general meeting itself regarding the
continuing role of a director outside the normal annual general meeting.

 

2.    Since convening the meeting and proxy advisers issuing
recommendations on voting, De La Rue announced its third profit warning of
2022 alongside a material uncertainty going concern qualification from its
auditor, EY.

 

3.    Since the publication of De La Rue's interim results on 23 November
2022, Crystal Amber has held discussions with a number of De La Rue's
institutional shareholders. Despite obvious dissatisfaction arising from the
latest profit warning, Crystal Amber understands that as a result of the
material uncertainty going concern audit opinion, there is some concern that
removing Mr Loosemore at this time might result in further instability.
However, as De La Rue convened the shareholder meeting following private
correspondence between Crystal Amber and the Chairman, Crystal Amber believes
that De La Rue is responsible for creating public instability.

 

4.    Crystal Amber remains of the view that Mr Loosemore's actions and
ability are an impediment to the release and return of shareholder value. This
is evidenced by strategic errors, a share price 30 per cent below the level of
July 2020 at which £100 million of rescue equity finance was provided, three
profit warnings and the material uncertainty going concern audit
qualification.

 

5.    Crystal Amber believes that considerable strategic value remains at
De La Rue and that in order to protect and maximise shareholder value, it must
seek to participate in industry consolidation without delay.

 

For further enquiries please contact:

 

Crystal Amber Fund Limited

Chris Waldron (Chairman)

Tel: 01481 742 742

www.crystalamber.com (http://www.crystalamber.com)

 

Allenby Capital Limited - Nominated Adviser

David Worlidge/Freddie Wooding

Tel: 020 3328 5656

 

Winterflood Investment Trusts - Broker

Joe Winkley/Neil Langford

Tel: 020 3100 0160

 

Crystal Amber Advisers (UK) LLP - Investment Adviser

Richard Bernstein

Tel: 020 7478 9080

 

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