(Alliance News) - Garda World Security Corp on Monday said it is mulling a GBP3 billion takeover offer for G4S PLC but explained that attempts to engage with the security services company's board have so far been rebuffed.
Montreal-based 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 23% to 180.15p each in London on Monday morning, giving it a market capitalisation of GBP2.79 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.
"GardaWorld's attempts to engage with G4S's board have now been summarily dismissed or ignored on three occasions. Consequently, GardaWorld now encourages G4S's shareholders to mandate their board's engagement in collaborative discussions towards a transaction that would be of clear and immediate benefit to G4S's shareholders, customers, employees and members of the company's pension schemes," GardaWorld said.
Should a tie-up happen, it would create "the world's leading security services business".
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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