Nov 16 (Reuters) - G4S, which is fighting a hostile
3 billion pound bid from smaller rival GardaWorld, sought on
Monday to highlight the potential of its U.S.-focused Retail
Cash Solutions (RCS) business, arguing it has "exceptional
unrecognised value".
"With its patented technology and strong growth, margins and
cash flow conversion, RCS benchmarks favourably with financial
technology and software services businesses," G4S said in a
statement.
"We believe that RCS provides G4S shareholders with material
value upside," it added.
UK-listed G4S, one of the world's largest private-security
firms employing more than half a million people, is caught in a
bidding war between Canada's GardaWorld and U.S. rival Allied
Universal Security Services.
Earlier this month, GardaWorld said it has extended its 190
pence per share offer to leave it open for acceptances until
Nov. 28. G4S shares were trading up 2% at 218p at 1620 GMT on
Monday.
G4S said it expects revenue in excess of $600 million from
RCS by 2025 -- more than triple the $170 million it reported
last year, which was a 30% jump compared to the preceding year.
While the segment only accounted for 2.2% of total revenue,
its growth was six times greater than the overall group.
After a 2015 launch, RCS has grown into a business that
manages more than $2 billion of cash on behalf of customers
across 10,000 installed locations in North America.
G4S said RCS has an asset-light business model, with cash
handling devices typically purchased and owned by retailers and
managed by RCS.
(Reporting by Muvija M and Aakash Jagadeesh Babu in Bengaluru
Editing by Keith Weir)
