Government approves acquisition of De La Rue by HID Corporation Ltd
The Competition Authority of Kenya has approved acquisition of De la Rue by HID Corporation Ltd which will take up 100 per cent of the firm’s issued share capital.
CAK Director-General Wang’ombe Kariuki confirmed saying the government “has authorised the proposed transaction as set out herein on condition that existing contracts the target (De La Rue Kenya Ltd) has with the government are honoured”.
Among the agreements is a Sh10 billion three-year contract with the Central Bank of Kenya to print the new currency notes.
Other than banknotes, De La Rue also prints cheque books and passports, debit and credit cards for banks and security documents for financial institutions.
SEE ALSO :Regulator gives nod to sale of De La Rue unit
De La Rue Kenya Limited (De La Rue Kenya), the target undertaking, is controlled by De La Rue PLC which has another subsidiary in Kenya - De La Rue Kenya EPZ Limited (DLR).
DLR is a 60/40 joint venture, owned by De La Rue PLC and the National Treasury (Kenya) respectively. DLR is involved in printing of currency in Kenya.
CAK has also clarified that, “It is important to note that DLR is not part of the proposed transaction and will continue with its ownership and operation.”
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In June, the British security printer, De La Rue, announced plans to sell its International Identity Solutions business (‘International ID’) to HID Corporation Ltd at a deal valued at Sh5.3 billion on a cash-free, debt-free basis, payable upon completion.
“After assessing all options, we believe that exiting the end-to-end identity solutions market is the right one for the Group and will deliver the most value to shareholders,” De La Rue’s chief executive Martin Sutherland said.
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De La RueNew CurrencyNational TreasuryDLRby HID Corporation LtdDe La Rue Kenya LtdCompetition Authority of Kenya