Shares in De La Rue PLC (LSE:DLAR) fluttered 13% higher after the bank-note specialist announced the sale of its Authentication arm for £300 million cash to NYSE-listed Crane NXT.
De La Rue said the sale follows an "extensive and wide-reaching process" by the board, with the proceeds to "create a more resilient and flexible group", though 5% of the consideration will be held in escrow for up to 18 months.
The Basingstoke-based group will repay its current credit facility in full and be left with a net cash position.
A £30 million payment will be made to reduce the deficit on its legacy defined benefit pension scheme, plus another £12.5 million in "deficit repair contributions" to the scheme over the next two and half years.
The net cash position "will create flexibility for the board to determine the best option to maximise the intrinsic value of the currency division for the benefit of shareholders and other stakeholders", it added.