G4S urges shareholders to reject hostile takeover bid with promise of 2021 returns
Security services firm G4S has announced that it has a “bright future as an independent company” in a bid to resist a potential hostile takeover.
The business has announced that dividends are set to resume in 2021, and has stated that further cash returns may be available through “disciplined” cash allocation.
The London-headquartered firm, which serves a range of sectors across the UK and overseas, is currently resisting a potential hostile takeover from Canadian security specialist GardaWorld, which made a bid for the company in October.
G4S has urged shareholders to continue to reject “GardaWorld’s wholly inadequate offer of 190 pence per share”.
John Connolly, chairman of G4S, commented: “G4S has a bright future as an independent company with significant value upside for shareholders.
“The board believes that G4S has significant potential to re-rate as a result of its above-market growth outlook, higher margins from integrated security services and the material value upside in retail cash solutions.
“The company’s resilient performance and positive outlook enables it to resume the dividend for 2021 and provides clear potential for significant further cash returns to shareholders.
Commenting on the takeover, he added: “The GardaWorld Offer does not remotely reflect G4S’s fundamental value, let alone its value to GardaWorld and BC Partners. We urge shareholders to take no action in relation to GardaWorld’s offer.”
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