International. G4S recently rejected a cash purchase offer from Garda World Security Corporation for 2.97 billion pounds ($3.82 billion) for the London-listed security company.
Montreal-based Garda World, which last year considered a bid for G4S but eventually abandoned its interest, formally launched the offer in mid-September, saying it will bring "professional and experienced management" to G4S and deploy the necessary resources to solve the important problems and challenges facing the company.
Shareholders accepting G4S would receive 190 pence per share in cash, a 30% premium to the share's closing price on Friday, September 11, the day before Garda World announced its plan to submit an offer.
In response to the offer, G4S said the value has not changed from the last proposal it received from Garda World, and that it "unanimously rejects the offer," saying it significantly undervalues the company.
G4S added that the company is increasingly well positioned to generate growth, profitability and substantial free cash flow as it executes its strategy.
"Since rejecting GardaWorld's latest proposal, G4S has announced continued resilience in its trading with underlying earnings prior to the previous year for the first eight months of 2020," said G4S Chairman John Connolly.
G4S reiterated that it believes the timing of the offer is very opportunistic given the global pandemic. G4S shares at 1255 GMT were up 9.75 pence, or 5.2%, at 198.85 pence.
"We look forward to meeting with investors to explain the challenges that lie ahead and why this is a fair and complete price for an asset facing turbulent times and difficult operating conditions," said Garda World President Stephan Cretier.
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