The security printing group’s board is in discussions with Disruptive Capital GP and Pension Superfund Capital (the PSFC Entities), which could result in a “partial offer” for up to 40% of its issued share capital at £1.25 a share.

This would require the approval of De La Rue’s shareholders, and the consent of the Takeover Panel.

Activist investor Crystal Amber Fund is currently De La Rue’s biggest shareholder with a 16.48% stake.

In a statement, De La Rue said: “The PSFC Entities have indicated that they are not seeking statutory control of the company and have confirmed their support for the company's management and current strategy, including the announced disposal of the Authentication division and the ongoing discussions with other parties in relation to the Company's Currency division.”

There can be no certainty that any partial offer will be made, or its terms.

In October 2024, De La Rue announced that it had agreed a £300m deal with US firm Crane NXT for the sale of its Authentication division.

That deal is subject to a number of conditions including the successful separation of the business and the physical separation of De La Rue’s Malta factory, such that Authentication and Currency can operate independently from the site.

De La Rue’s Currency division had sales of £207m in the group’s most recent financial year.

For the year to 30 March 2024 De La Rue posted overall sales down 11.3% at £310.3m.

Reuters has reported that De La Rue has also won an urgent order from the Central Bank of Libya to print 30bn Libyan dinars (around £4.9bn) in order to alleviate a liquidity shortage problem at the country’s commercial banks.

De La Rue’s share price had jumped before Christmas on the back of speculation about the possible deal.

At the time of writing it was at 105.00p (52-week high: 121.00p, low: 77.40p).