30th Sep 2020 12:12
(Alliance News) - Garda World Security Corp on Wednesday unveiled terms for its cash offer for G4S PLC which values the security services provider at close to GBP3 billion.
Earlier in September, G4S said that Montreal-based Garda World's 190 pence per share cash offer undervalued the company.
In its latest release, Garda World highlighted that the offer values the FTSE 250-listed firm at around GBP2.97 billion, with the 190p figure an approximately 86% premium to G4S's 102p June 12 share price - that being that last business day before GardaWorld made its first approach to G4S's board in connection with the offer.
Additionally, 190p is also a 30% premium to G4S's September 11 share price, which was the last closing price before the offer period commenced.
On Wednesday, shares in G4S were up 4.6% at 197.75p, exceeding the offer price.
According to Gard World: "G4S has a long history of overpromising and under-delivering and has consistently failed its stakeholders over the last decade."
Garda World claimed that it would "bring experienced, professional management to G4S" to help solves the company's "significant challenges".
Moreover, Gard World said the offer provided "clear, immediate as well as long-term benefits to shareholders, customers, employees, the public and members of G4S's pension schemes.
Garda World is also planning to maintain UK headquarters in London and retain all UK public sector contracts.
Gard World Chief Executive & Chair Stephan Cretier said: "G4S is a deeply troubled business which needs a committed owner-operator team that understands the sector and has a definitive and comprehensive plan. Stakeholders can take no confidence in the promises of a senior management team that has been in place for seven years and has not delivered for shareholders, customers, employees or the public.
"The G4S board has behaved in a cavalier way by rejecting our potential offer out of hand. We look forward to meeting with investors to explain the challenges ahead and why this is a full and fair price for an asset which faces turbulent times and difficult operating conditions."
On Monday last week, G4S said underlying earnings for the first eight months of 2020 were ahead of the prior year period due to a "resilient" revenue performance.
Group revenue for the eight months to August-end was just 1.9% lower overall and this was more than offset by tight direct and indirect cost control and reduced interest costs, the latter reflecting both refinancing benefits and the company's improving net debt position, G4S explained at the time. Secure Solutions revenue, which account for 93% of group revenue, were broadly in line with 2019, it said.
By Anna Farley; [email protected]
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