De La Rue (DLAR) has seen a positive trend in its share price since June 2023, starting from a low point. The recent news of the company selling its authentication division to US-based Crane NXT for £300mn has further boosted its valuation. This deal aligns with the valuation of the division done by Richard Bernstein, an investment manager at Crystal Amber (CRS), which holds a significant stake in De La Rue.

Crystal Amber and other major shareholders of De La Rue are known for their active involvement in shareholder matters. In the past, there have been disagreements on certain issues. In late 2022, Crystal Amber accused then-chair Kevin Loosemore of making defamatory statements against the activist investor. This incident occurred amidst a series of profit warnings issued by the company, which had a more significant impact on its valuation than any alleged market manipulation.

Despite gaining initial support from shareholders, Loosemore eventually resigned six months after the dispute, as it became evident that the company’s turnaround plan was ineffective in halting the decline in share price. The involvement of activist investors like Crystal Amber highlights the importance of shareholder activism in holding companies accountable for their performance and strategic decisions.

Overall, De La Rue’s recent divestiture of its authentication division marks a significant development in its strategic direction. The company’s focus on streamlining its operations and optimizing its business portfolio reflects a commitment to enhancing shareholder value and driving long-term growth. Investors will be closely monitoring the company’s performance in the coming months to assess the impact of this transaction on its financial outlook and market positioning.