Last checked at 26 Mar 2010 07:00
25th March 2010
De La Rue plc
Disposal of shareholding in Camelot Group plc
De La Rue plc ("De La Rue") today announces the sale, subject to National Lottery Commission approval, of the Group's 20% shareholding in the UK Lottery company, Camelot Group plc and its sister company Camelot Global Services Limited (together "Camelot"), to Premier Lotteries UK Limited, an English company controlled by Ontario Teachers' Pension Plan ("OTPP") for a consideration of approximately £77.8m in cash. De La Rue has disposed of its stake in Camelot as the participation in the UK National Lottery and its commercial activities are not core to De La Rue's ongoing strategic development. The proceeds will be used to reduce the pension fund deficit as well as to return surplus cash to shareholders via a share buy back over a period of time.
Camelot, as the licensed operator of the UK National Lottery, is a public limited company wholly owned by five shareholders: De La Rue Holdings plc, Cadbury Holdings Limited, Fujitsu Services Ltd, Royal Mail Enterprises Ltd and Thales Electronics plc. De La Rue's share of Camelot's profit before tax for the year ended 31st March 2009 was £12.5m. All five existing shareholders have approved the sale of their shares to OTPP for a combined consideration of approximately £389 million.
The gross value of the investment in Camelot in the financial statements of De La Rue as at 26 September 2009 was £20.6 million. Any gain on the sale will not be subject to Capital Gains Tax as De La Rue has sufficient UK capital losses brought forward. Completion of the contract is expected to be on or before 30th September 2010. The expected consideration of £77.8m will be paid in full to De La Rue, subject to finalisation of the completion accounts.
Ontario Teachers' Pension Plan is the largest single-profession pension plan in Canada.
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For further information, please contact:
| James Hussey | Chief Executive | +44 (0)1256 605222 |
| Simon Webb | Group Finance Director | +44 (0)1256 605222 |
| Clare Lloyd Williams | Group Communications Manager | +44 (0)1256 605222 |
| Richard Mountain | Financial Dynamics | +44 (0)207 269 7291 |
| De La Rue is the world's largest commercial security printer and papermaker, involved in the production of over 150 national currencies and a wide range of security documents such as passports, authentication labels and fiscal stamps. The company is a leading provider of cash sorting equipment and software solutions to Central Banks, helping them to reduce the cost of handling cash. De La Rue also pioneers new technologies in government identity solutions for national identification, driver's licence and passport issuing schemes. De La Rue employs approximately 4,000 people worldwide and is a member of the FTSE 250.
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| For further information visit De La Rue's website at www.delarue.com |