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UK shares outside the FTSE 100 and FTSE 250 don’t always get the attention they deserve. And I think this is the case with De La Rue (LSE:DLAR) – a firm that manufactures banknotes.
Right now, the company has a market-cap of £206m, but it’s about to raise £300m in cash by selling off part of its business. Is there a catch, or is this a golden opportunity for investors?
What’s the catch?
De La Rue’s business has two parts to it – an authentication unit and a currency unit. The first one provides security technology for identity documents and the second one prints banknotes.
The company has agreed to sell off the authentication division to Crane NXT for £300m. That’s more than the entire market-cap of the UK company.
In theory, De La Rue could return all of this to shareholders immediately thereby paying a dividend that’s higher than the share price. But…
