(Alliance News) - G4S PLC on Monday rejected interest from Garda World Security Corp and said the Montreal-based firm's possible takeover offer undervalues the company.
GardaWorld earlier on Monday said it was mulling a GBP3 billion takeover offer for G4S but explained that attempts to engage with the security services company's board have so far been rebuffed.
GardaWorld announced a possible 190 pence per share offer for G4S, which is a 30% premium to its 145.90p closing price on Friday.
The stock surged 25% to 182.00p each in London on Monday morning, giving it a market capitalisation of GBP2.82 billion.
GardaWorld noted that the potential offer is also an 86% premium to the G4S's share price on June 15, when it first made an approach to the company's board.
In response, G4S said: "The board believes that the timing of the proposal is highly opportunistic, coming as it does at a time of severe turbulence in global financial markets. Furthermore the company's financial performance following the outbreak of Covid-19 has been particularly resilient."
The 190p per share bid came after GardaWorld made two separate offers of 145p and 153p back in June and September, respectively, G4S noted.
G4S said the new offer still "significantly undervalues the company and its prospects".
Should a tie-up happen, it would create "the world's leading security services business", GardaWorld said.
GardaWorld Chair Stephan Cretier added: "G4S needs an owner, not a manager. GardaWorld has 25 years of experience in the sector and we know how to improve and repurpose this business. As owner-operators, we believe that the combined business's operations will offer a better future for all those who depend on G4S. We will turn G4S around, ensuring it delivers for its customers, its people and the public.
"Our valuation offers a certain path for G4S's shareholders to immediately recover lost value. We encourage shareholders to ask G4S's board to begin engaging with us."
GardaWorld also labelled G4S a "business which has not delivered for shareholders, customers, employees or the public". G4S needs a change at the top, GardaWorld said, with "new, professional and experienced leadership".
News of the possible offer comes less than a week after the UK Serious Fraud Office charged three former executives of G4S Care & Justice Services (UK) Ltd with multiple offences relating to a scheme to defraud the Ministry of Justice.
The three G4S Care & Justice executives charged are: Richard Morris, former managing director; James Jardine, former finance manager and acting commercial director of the electronic monitoring business; and Mark Preston, former commercial director of electronic monitoring.
By Eric Cunha; ericcunha@alliancenews.com
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