28th Oct 2013 07:53
CRAWLEY (Alliance News) - UK-based security services provider G4S PLC announced Monday that it rejected a GBP1.550 billion offer for its cash solutions business from Private equity firm Charterhouse Capital Partners LLP, saying that the conditional offer fundamentally undervalues the business and its prospects.
G4S said that on 22nd October, it received a non-binding, indicative and conditional offer of 1.550 billion pounds from Charterhouse Capital Partners LLP for its cash solutions business. The non-binding offer is subject to due diligence and financing and free of cash, debt, tax and pension liabilities.
According to G4S, cash solutions services will be core to G4S' operations and strategic plans. The Board regards the nature and timing of the approach to be highly opportunistic and, following due consideration the offer has been firmly rejected considering the strategic importance of the cash solutions businesses to G4S and because the Board believes the conditional offer fundamentally undervalues the business and its prospects.
The company said it does not intend to pursue this non-binding, conditional offer and has notified Charterhouse Capital Partners LLP.
As indicated at the time of the August 2013 share placing, G4S is committed to invest in its core businesses, including cash solutions, which have strong opportunities for sustainable profitable growth. The cash solutions business is integral to G4S' operations and strategic plans, the company said.
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