(Alliance News) -Â G4S PLC on Tuesday after the London market close said it has agreed to be taken over by Allied Universal in a GBP3.8 billion deal.
Under the offer made by Atlas UK Bidco Ltd - which is indirectly controlled by Allied Universal - G4S shareholders will be entitled to receive 245 pence in cash for each share held. This values G4S at GBP3.8 billion and represents a 68% premium to G4S's closing price on September 11, the last business day before the offer period commenced.
The offer also represents a 4% premium to GardaWorld's rival offer of 235p per share.
G4S shares closed up 3.2% at 255.30 pence in London on Tuesday.
The directors of the London-listed security services firm intend to unanimously to recommend shareholders accept the offer.
The deal is expected to close in the first quarter of 2021.
"The combination of G4S and Allied Universal creates the global leader in security with over 750,000 employees, industry leading capabilities and unrivalled market coverage. This unique and compelling combination will offer customers exceptional service and provides employees with an exciting future," said G4S Chief Executive Ashley Almanza.
In September, the board of FTSE 250-listed G4S rejected Montreal-based GardaWorld's initial 190p approach, saying it undervalued the company. However, in October, GardaWorld directly approached G4S shareholders with that same GBP3 billion offer.
And in November, the directors of G4S rejected a GBP3.25 billion bid from Allied Universal - offering "at least" 210p per share - again stating that it undervalued the business.
GardaWorld last week bumped up its offer to 235p per share.
By Lucy Heming;Â lucyheming@alliancenews.com
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