(Alliance News) - Montreal-based Garda World Security Corp on Monday directly approached G4S PLC shareholders after its GBP3 billion cash offer for the UK security services firm was rejected by G4S's board.
The Canadian security services provider said unit Fleming Capital Securities Inc has sent an offer document to G4S shareholders which sets out "highlights of the offer, its valuation drivers, the challenges faced by G4S and how GardaWorld aims to solve them".
Garda World Founder, Chair & Chief Executive Officer Stephan Cretier said: "We are delighted to present our formal cash offer to shareholders which we believe rewards their patience with a business that continues to face legacy challenges and future uncertainty. G4S's customers deserve higher quality service, its employees deserve better leadership and its pensioners deserve a higher degree of certainty that their retirement income is secure."
In response to posting of the offer document, G4S asked its shareholders to "reject the offer and take absolutely no action" as the offer remained unchanged from Garda's September offer, which it said significantly undervalues the company.
"The board will be writing to shareholders in accordance with the code within the next 14 days with its formal response to the offer, which will explain in detail its reasons for recommending that shareholders reject the offer" G4S said.
"When assessing the value of G4S, what matters is the strength of the company's current position, performance and its future prospects," it added.
It noted that GardaWorld is "a very highly leveraged business" as a result of a string of acquisitions, and G4S's strong balance sheet provides more reliable support for G4S pension funds.
"We believe that GardaWorld needs G4S in order to realise its aspirations," G4S said Monday. "This should not be at the expense of G4S’s shareholders and other stakeholders."
G4S in September had rejected Garda World's 190p per share cash offer saying it undervalued the company.
Shares in G4S were up 0.1% at 208.90 pence each in London. Year-to-date, the stock has lost about 4% in value.
Separately, the FTSE 250-listed company earlier in October had confirmed a buyout approach by US security and facility services company Allied Universal Security Services LLC.
By Tapan Panchal; tapanpanchal@alliancenews.com
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