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Activist Crystal Amber to buy more De La Rue shares

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By Reuters
Activist Crystal Amber to buy more De La Rue shares
FILE PHOTO: The corporate logo of De La Rue is seen at De La Rue Malta at Bulebel Industrial Estate in Zejtun, Malta April 24, 2018. REUTERS/Darrin Zammit Lupi   -   Copyright  Darrin Zammit Lupi(Reuters)

(Reuters) – De La Rue’s <DLAR.L> second-biggest shareholder, activist fund Crystal Amber, said on Tuesday it was “not alarmed” by the company’s weak first-half results and would buy more shares of the British banknotes and passport printer.

Earlier in the day, De La Rue warned of “significant doubt” that it can continue as a going concern and swung to a first-half loss as it tackles stiff competition.

“We think today’s news is really reflecting the mismanagement in the past … so we are not alarmed and are buying more shares,” Crystal Amber’s Richard Bernstein told Reuters.

Bernstein said the fund was “very encouraged” by De La Rue’s new top boss Clive Vacher, who took over in October and has been tasked with turning around the company and reducing its debt burden.

Crystal Amber, which owns just over 7% of De La Rue, in September said the company suffered from a lack of strong and knowledgeable leadership. The fund last year said De La Rue was “highly vulnerable” to a takeover.

(Reporting by Pushkala Aripaka in Bengaluru; Editing by Maju Samuel)