9th Oct 2020 14:15
(Alliance News) - G4S PLC on Friday said it has been approached by US security and facility services company Allied Universal Security Services LLC in relation to a takeover offer.
The FTSE 250-listed security services provider is currently the target of a hostile takeover attempt from Montreal-based Garda World Security Corp.
G4S stated that while there is no certainty that an offer will be made by Allied Universal, nor its terms, it advises shareholders to reject GardaWorld's "unattractive and highly opportunistic offer" of 190 pence per share which "significantly undervalues G4S and its prospects".
Garda World - which made a GBP3 billion cash offer for G4S in September- on Tuesday heaped further criticism upon G4S's current management, publishing documents which included claims that G4S's pension deficit has been "highly underestimated" with "serious issues" over the status of G4S's GBP2.7 billion of pension scheme gross liabilities. Attention was also drawn to G4S's GBP1.6 billion one-off costs and restructuring charges since 2013.
In response, G4S said: "GardaWorld's focus on legacy issues, which are now substantially resolved, and its misleading statements are designed to provide support for its opportunistic and clearly inadequate offer."
"GardaWorld's record is one of a loss-making company which has reported net losses attributable to shareholders of CAD940 million in the past three years and it lacks the geographic coverage to be a truly global company. GardaWorld clearly needs a transformative acquisition in order to realise its aspiration to be a global company and this is simply not reflected in its offer of 190 pence per share," it added.
Shares in G4S were trading 5.3% higher at 212.10 pence each on Friday afternoon in London.
By Ife Taiwo; [email protected]
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