Statement regarding De La Rue plc GM
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
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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